What was the net income for Bath Tune Up as of December 31, 2024?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | ||
| Other expense, net (229,065) (537,961) | ||
| Total Other income (expense) (145,860) (483,224) | ||
| Net income $ 1,588,884 $ 2,271,476 |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the net income as of December 31, 2024, was $1,588,884. This figure represents the company's profit after deducting all operating expenses, other expenses, and accounting for other income. In comparison, the net income for the previous year, December 31, 2023, was $2,271,476.
Analyzing the revenues and expenses, Bath Tune Up's total revenue for 2024 was $13,929,258, while in 2023, it was $14,408,298. The operating expenses for 2024 totaled $12,194,514, compared to $11,653,598 in 2023. This resulted in an income from operations of $1,734,744 in 2024 and $2,754,700 in 2023. Other income and expenses also played a role, with a total other income (expense) of ($145,860) in 2024 and ($483,224) in 2023.
For a prospective franchisee, understanding these figures is crucial. Net income indicates the financial health and profitability of Bath Tune Up. While the net income decreased from 2023 to 2024, it's important to investigate the reasons behind this change, such as increased operating expenses or decreased revenue. Franchisees should consider these trends when evaluating the potential of investing in a Bath Tune Up franchise. It is also important to note that this is the financial performance of the franchisor and not necessarily reflective of the potential financial performance of an individual franchise location.
It is also important to consider the cash flow from operating activities. The FDD indicates that the net cash provided by operating activities was $2,535,078 as of December 31, 2024, and $1,787,454 as of December 31, 2023. This metric reflects the cash a company generates from its normal business operations. Reviewing these figures alongside net income provides a more comprehensive view of Bath Tune Up's financial stability and operational efficiency.