What was the 'selling and advertising' expense 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 selling and advertising expenses for the year ending December 31, 2024, were $3,407,107. This figure reflects the costs Bath Tune Up incurred for its selling and advertising activities during that fiscal year.
For a prospective franchisee, understanding these expenses is crucial as it provides insight into the franchisor's investment in marketing and brand promotion. A higher investment in these areas could translate to greater brand awareness and customer acquisition, potentially benefiting individual franchise locations. Conversely, a lower figure might suggest a more localized or franchisee-funded marketing approach.
It's important for potential Bath Tune Up franchisees to inquire about the specific strategies and channels used for selling and advertising, as well as the allocation of these expenses between national campaigns and support for local franchisee marketing efforts. Understanding the effectiveness and reach of these initiatives can help franchisees assess the potential return on their own marketing investments and the overall value of the franchise system's marketing support.