What was the royalty 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 royalty income as of December 31, 2024, was $7,256,176. This represents the income Bath Tune Up received from royalties paid by its franchisees during that year. Royalty income is a crucial revenue stream for franchisors, reflecting the overall performance and sales volume of the franchise system. A prospective franchisee should consider this figure in relation to the royalty structure outlined in Item 6 of the FDD to understand how their sales will contribute to the franchisor's income.
For a potential Bath Tune Up franchisee, understanding the franchisor's royalty income is important for several reasons. First, it provides insight into the financial stability and health of the franchisor. A strong royalty income suggests that the franchise system is performing well and that franchisees are generating sufficient revenue. Second, it highlights the franchisor's reliance on franchisee success, aligning the franchisor's interests with those of its franchisees.
In addition to royalty income, Bath Tune Up also earns revenue through continuing franchise fees, gross sales rebates, initial franchise fees, and product sales. Reviewing these different revenue streams can provide a more complete picture of the franchisor's financial performance and business model. A prospective franchisee should analyze these figures in conjunction with the franchisor's expenses and net income to assess the overall profitability and sustainability of the Bath Tune Up franchise system.
It's also worth noting that the FDD includes royalty income data for the previous year, December 31, 2023, which was $6,827,867. Comparing these figures year-over-year can reveal trends in the franchisor's performance and the growth of the franchise system. A prospective franchisee should look for consistent growth and positive trends, as these can indicate a healthy and well-managed franchise system.