What was the net income for Bath Tune Up for the year ended December 31, 2023?
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 net income for the year ended December 31, 2023, was $2,271,476. This figure represents the company's profit after all revenues and expenses were accounted for during that fiscal year.
This net income figure is an important indicator of Bath Tune Up's financial performance and overall profitability. Prospective franchisees may use this information to assess the financial health and stability of the franchisor. It is important to note that this net income is for HFC KTU LLC, which operates both Kitchen Tune-Up and Bath Tune-Up franchises.
Understanding the revenues and expenses that contribute to the net income can provide further insights. Reviewing the line items such as royalty income, franchise fees, operating expenses, and other income/expenses can help potential franchisees understand the business's financial dynamics. Additionally, comparing the 2023 net income to previous years, such as 2024 where the net income was $1,588,884 and 2022 where the net earnings were $4,223,532, can reveal trends and potential areas of growth or concern.