What was the royalty income for Bath Tune Up as of December 31, 2023?
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 royalty income as of December 31, 2023, was $6,827,867. This figure represents the income Bath Tune Up received from its franchisees in the form of royalty payments during that year. Royalty payments are typically a percentage of a franchisee's gross sales and are a primary source of revenue for the franchisor.
For a prospective Bath Tune Up franchisee, this number provides insight into the financial health and revenue streams of the franchisor. A consistent and growing royalty income can indicate a stable and successful franchise system. It also reflects the collective sales performance of the franchisees within the Bath Tune Up network.
It's important to note that while this figure represents the royalty income for Bath Tune Up, it does not reflect the profitability of individual franchise locations. Prospective franchisees should carefully review Item 19 of the FDD, which provides financial performance representations, and conduct their own independent research to assess the potential profitability of a Bath Tune Up franchise in their specific market.