What were the total operating expenses 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 total operating expenses as of December 31, 2024, were $12,194,514. This figure encompasses various costs associated with running the Bath Tune Up franchise system. Understanding the components of these operating expenses is crucial for potential franchisees to assess the financial health and stability of the franchisor. 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, cost of product sales amounted to $61,171, selling and advertising expenses were $3,407,107, and operating and administrative expenses totaled $8,682,605. Additionally, there was a foreign exchange loss of $15,613 and other operating expenses of $28,018. These figures provide insight into where Bath Tune Up allocates its resources to support its franchisees and maintain its operations. A prospective franchisee should analyze these figures in relation to the revenue to understand the efficiency of the operations.
For a potential Bath Tune Up franchisee, this information is vital for conducting due diligence and understanding the financial performance of the franchisor. Reviewing these expenses in comparison to previous years, as well as industry benchmarks, can offer a clearer picture of the franchisor's financial management and potential profitability. It is also important to note that these expenses are those of the franchisor, not the franchisee. A franchisee will have their own operating expenses to consider when projecting profitability.