What were the total operating expenses 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 total operating expenses as of December 31, 2023, were $11,653,598. This figure encompasses various costs associated with running the Bath Tune Up franchise system. These expenses include the cost of product sales, selling and advertising costs, operating and administrative expenses, loss on disposal of assets, foreign exchange loss (gain), and other operating expenses.
Breaking down the operating expenses, the cost of product sales was $38,689, selling and advertising expenses amounted to $3,309,601, and operating and administrative expenses totaled $8,310,719. Additionally, there was a loss on disposal of assets of $3,651 and a foreign exchange gain of $9,062. These figures provide insight into where Bath Tune Up allocates its resources to maintain and grow the franchise system.
Prospective franchisees should consider these operating expenses when evaluating the financial viability of a Bath Tune Up franchise. Understanding the breakdown of these expenses can help franchisees anticipate their own potential costs and manage their finances effectively. It's also worth noting that these figures reflect the expenses of the overall franchise system and may not directly translate to the expenses of an individual franchise location, which will depend on factors such as location, sales volume, and management practices.