How much did Bath Tune Up spend on operating and administrative expenses in 2024?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
t L | You (only if you purchase two territories) and us |
HFC KTU LLC (dba Kitchen Tune-Up and Bath Tune-Up) Statements of Operations
| For the Years Ended | |||||
|---|---|---|---|---|---|
| December 31, 2024 | December 31, 2023 | ||||
| Revenue | |||||
| Royalty income | $ | 7,256,176 | $ | 6,827,867 | |
| Continuing franchise fees | 2,801,768 | 2,588,937 | |||
| Gross sales rebates | 2,085,378 | 2,151,381 | |||
| Initial franchise fees | 1,579,558 | 2,632,960 | |||
| Product and other sales | 206,378 | 207,153 | |||
| Total Revenue | 13,929,258 | 14,408,298 | |||
| Operating expenses | |||||
| Cost of product sales | 61,171 | 38,689 | |||
| Selling and advertising | 3,407,107 | 3,309,601 | |||
| Operating and administrative | 8,682,605 | 8,310,719 | |||
| Loss on disposal of assets | — | 3,651 | |||
| Foreign exchange loss (gain) | 15,613 | (9,062) | |||
| Other operating expense | 28,018 | — | |||
| Total Operating expenses | 12,194,514 | 11,653,598 | |||
| Income from operations | 1,734,744 | 2,754,700 | |||
| Other income (expense) | |||||
| Interest income | 83,205 | 54,737 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune-Up's 2025 Franchise Disclosure Document, the company's operating and administrative expenses for the year ending December 31, 2024, totaled $8,682,605. This figure is a key indicator of the costs Bath Tune-Up incurs to manage its business operations, excluding direct costs related to product sales and specific selling and advertising efforts.
For a prospective Bath Tune-Up franchisee, understanding these operating and administrative expenses is crucial. It provides insight into the financial health and stability of the franchisor. A significant portion of these expenses may cover salaries, rent, utilities, and other overhead costs necessary to support the franchise network. Franchisees should consider this number in relation to the franchisor's revenue to assess the efficiency of the company's operations.
Furthermore, the FDD reveals that lease expenses are included within these operating and administrative costs. Specifically, total operating lease expenses amounted to $221,958 in 2024. This detail helps a potential franchisee understand the components of the larger operating and administrative expense figure and how Bath Tune-Up manages its lease obligations. Reviewing these expenses over time, as the FDD also provides the 2023 figures, can show trends and potential areas of cost management or increases.