What was the 'Selling and advertising' operating expense 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 "Selling and advertising" operating expense as of December 31, 2023, was $3,309,601. This figure represents the total amount Bath Tune Up spent on selling and advertising activities during that year.
For a prospective franchisee, understanding this expense is crucial as it provides insight into the franchisor's investment in marketing and brand promotion. A significant investment in selling and advertising can help drive brand awareness and customer traffic to individual franchise locations. This can positively impact a franchisee's revenue and overall business success.
However, franchisees should also consider how these expenses are allocated and whether they contribute directly to their local market. It is important to investigate the effectiveness of Bath Tune Up's advertising strategies and how they support franchisee growth. Prospective franchisees should inquire about the specific advertising and marketing initiatives included in this expense and how they benefit individual franchise locations.