What was the total equity for Bath Tune Up as of December 31, 2022?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 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 | | | Other expense, net | | (229,065) | | (537,961) | | | Total Other income (expense) | | (145,860) | | (483,224) | | | Net income | $ | 1,588,884 | $ | 2,271,476 | |
HFC KTU LLC (dba Kitchen Tune-Up and Bath Tune-Up) Statements of Member's Equity
| | Member's equity | Due from Parent | Total Equity |
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 total equity as of December 31, 2022, was $3,403,376. This figure represents the net worth of the company at that specific point in time, reflecting the difference between its assets and liabilities. Equity is a key indicator of a company's financial health and stability.
Specifically, the equity is calculated from a member's equity of $9,523,034 and a deduction for amounts due from the parent company of $6,119,658. These values are combined to arrive at the total equity figure.
For a prospective Bath Tune-Up franchisee, this number provides insight into the financial strength of the franchisor. A higher equity can suggest a more stable and reliable partner. However, it's essential to consider this figure in conjunction with other financial metrics and qualitative factors, such as the brand's market position and management experience, to gain a comprehensive understanding of the franchise opportunity.