What were the net earnings for Bath Tune Up for the year ended December 31, 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 year ended December 31, 2022, were $4,223,532. This figure represents the company's profit after deducting all operating expenses, interest, and other losses from its total revenue. It is a key indicator of the company's overall financial performance and profitability during that period.
Bath Tune Up's revenue streams for 2022 included initial franchise fees of $3,007,397, royalty income of $6,165,332, continuing franchise fees of $2,012,156, gross sales rebates of $2,626,000 and product sales of $192,494, totaling $14,003,379. The company's operating expenses totaled $9,866,761 which included the cost of product sales, selling and advertising, and operating and administrative costs.
In addition to earnings from operations, Bath Tune Up also had other income, including interest income of $96,831 and a gain on the sale of equipment of $2,862, offset by a foreign exchange loss of $12,779, resulting in total other income of $86,914. These figures provide a comprehensive view of the financial health and operational efficiency of Bath Tune Up during the specified year. A prospective franchisee can use this information to assess the financial stability and potential profitability of the franchise system.