What was the royalty income for Bath Tune Up for the year ended December 31, 2024?
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 royalty income for the year ended December 31, 2024, was $7,256,176. This 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 and brand development.
For a prospective Bath Tune Up franchisee, this figure highlights the established revenue generation of the franchise system. It indicates the scale of the network and the collective sales performance of franchisees. The royalty income, when compared to previous years, can also reveal trends in the brand's performance and growth trajectory. In 2023, the royalty income was $6,827,867.
Understanding the franchisor's revenue sources is essential for potential franchisees. It provides insight into the financial health and stability of the Bath Tune Up franchise system. Reviewing these figures in conjunction with other financial statement data, such as operating expenses and net income, offers a comprehensive view of the franchisor's financial performance.
It is important to note that while royalty income is a key indicator, prospective franchisees should also consider other factors such as the number of operating units, average sales per unit, and the overall market conditions to assess the potential of a Bath Tune Up franchise.