What was the total revenue for Bath Tune Up in the year ended December 31, 2023?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
t L | You (only if you purchase two territories) and us |
HFC KTU LLC (dba Kitchen Tune-Up and Bath Tune-Up) Statements of Operations
| 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 |
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 revenue for the brand for the year ended December 31, 2023, was $14,408,298. This revenue is comprised of several components, including royalty income, continuing franchise fees, gross sales rebates, initial franchise fees, and product and other sales. Understanding the different sources of revenue can help a prospective franchisee understand the financial drivers of the Bath Tune-Up franchise system.
Breaking down the revenue streams, royalty income contributed $6,827,867, continuing franchise fees accounted for $2,588,937, gross sales rebates totaled $2,151,381, initial franchise fees amounted to $2,632,960 and product and other sales made up $207,153 of the total revenue. These figures provide insight into how Bath Tune-Up generates income, with a significant portion coming from royalties and franchise fees, which are common in franchise business models.
For a potential Bath Tune-Up franchisee, this information is crucial for evaluating the financial health and stability of the franchise system. It demonstrates the brand's ability to generate revenue through various channels. Reviewing these figures in comparison to previous years and alongside the company's expenses can offer a more comprehensive understanding of the franchise's profitability and growth potential. It is also important to note that these figures reflect the combined revenues of both Kitchen Tune-Up and Bath Tune-Up, as they are under the same parent company, HFC KTU LLC.