What was the royalty income 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 |
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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 royalty income for the company in 2022 was $6,165,332. This figure represents the income Bath Tune Up received from its franchisees as a percentage of their sales. Royalty income is a crucial revenue stream for the franchisor, supporting ongoing services, training, and brand development.
For a prospective franchisee, understanding the franchisor's royalty income can provide insights into the financial stability and health of the franchise system. A consistent and growing royalty income suggests that franchisees are generating sales and the brand is maintaining a strong market presence. This can be a positive indicator of the overall success and sustainability of the Bath Tune Up franchise model.
However, it's important to note that this royalty income is reported for HFC KTU LLC, which operates both Kitchen Tune-Up and Bath Tune-Up franchises. Therefore, the reported royalty income combines the revenue from both brands. A prospective Bath Tune Up franchisee should consider this when evaluating the financial performance and ensure they understand the specific contribution of Bath Tune-Up to the overall royalty income. Further due diligence, including speaking with existing franchisees, is recommended to gain a comprehensive understanding of the financial dynamics.