What were the net earnings for Bath Tune Up in 2022?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Total equity | 3,403,376 | | Total liabilities and member's equity | $ 5,883,489 |
The accompanying notes are an integral part of the financial statements.
Statement of Earnings
| For the year ended December 31, | 2022 |
|---|---|
| Revenue | |
| Initial franchise fees | $ 3,007,397 |
| Royalty income | 6,165,332 |
| Continuing franchise fees | 2,012,156 |
| Gross sales rebates | 2,626,000 |
| Product sales | 192,494 |
| Total revenue | 14,003,379 |
| Operating expenses | |
| Cost of product sales | 83,800 |
| Selling and advertising | 3,551,693 |
| Operating and administrative | 6,231,268 |
| Total operating expenses | 9,866,761 |
| Earnings from oper |
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 net earnings for the company, which includes both Kitchen Tune-Up and Bath Tune-Up, for the year ending December 31, 2022, were $4,223,532. This figure represents the combined net earnings of both the Kitchen Tune-Up and Bath Tune-Up brands, as they operate under the same parent company, HFC KTU LLC. It's important to note that these are the earnings for the overall company, not the earnings of an individual franchise location.
This net earnings figure is calculated after deducting total operating expenses of $9,866,761 from the total revenue of $14,003,379, and then adding other income of $86,914. The revenue streams include initial franchise fees, royalty income, continuing franchise fees, gross sales rebates, and product sales. The operating expenses include the cost of product sales, selling and advertising costs, and operating and administrative expenses.
For a prospective Bath Tune-Up franchisee, this information provides a view into the overall financial performance of the parent company. While it doesn't directly reflect the potential profitability of an individual franchise, it can offer insights into the financial stability and revenue generation capabilities of the franchisor. Understanding the franchisor's financial health is crucial, as it can impact the level of support, resources, and brand recognition a franchisee can expect.
It is important for potential franchisees to request and review the financial performance representations of existing Bath Tune-Up franchise locations. Item 19 of the FDD would provide details on franchisee performance. Reviewing Item 19 in detail and speaking with current franchisees will give a potential franchisee a clearer picture of the potential financial performance of a Bath Tune-Up franchise.