What were the total general and administrative expenses for Belocal in the provided financial data?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Net income | $ 1,539,406 | $ 540,636 | $ 695,773 |
|---|---|---|---|
| Provision for income taxes | 447,793 | 207,418 | 357,481 |
| Income before provision for income taxes | 1,987,199 | 748,054 | 1,053,254 |
| Total other income | 298,901 | 204,059 | 37,271 |
| Interest income | 222,087 | 128,182 | |
| Other income | 76,814 | 75,877 | 37,271 |
| Other income: | |||
| Income from operations | 1,688,298 | 543,995 | 1,015,983 |
| Total general and administrative expenses | 19,210,128 | 18,416,751 | 16,801,070 |
| Other general and administrative expenses | 2,742,199 | 2,137,504 | 797,670 |
| Professional fees | 140,517 | 158,304 | 181,609 |
| Personnel cost | 3,708,010 | 3,812,198 | 4,289,814 |
| Management fees | 6,624,000 | 6,048,000 | 4,800,000 |
| Advertising and marketing | 5,995,402 | 6,260,745 | 6,731,97 |
| General and administrative expenses: | |||
| Gross profit | 20,898,426 | 18,960,746 | 17,817,05 |
| Total cost of revenue | 61,603,495 | 58,490,108 | 59,959,187 |
| Commissions | 61,603,495 | 58,361,946 | 59,767,29 |
Source: Item 23 — RECEIPTS (FDD pages 71–242)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the total general and administrative expenses for the years ending June 30, 2025, 2024, and 2023 were $19,210,128, $18,416,751, and $16,801,070, respectively. These figures represent the overall costs associated with managing and operating the Belocal franchise system. These expenses encompass a range of overhead costs necessary to support the franchise network.
Breaking down these expenses further, the FDD also lists "Other general and administrative expenses" as $2,742,199 for 2025, $2,137,504 for 2024, and $797,670 for 2023. Additionally, the FDD specifies other costs that fall under general and administrative expenses, such as professional fees, personnel costs, management fees, and advertising and marketing expenses. For example, management fees alone were $6,624,000 in 2025, $6,048,000 in 2024 and $4,800,000 in 2023.
For a prospective Belocal franchisee, understanding these expenses is crucial. While franchisees do not directly pay these costs, they reflect the franchisor's financial health and stability. Higher general and administrative expenses could indicate greater investment in support services, technology, or personnel, which could benefit franchisees. However, it could also signal inefficiencies or financial strain within the organization. Therefore, a potential franchisee should analyze these figures in the context of Belocal's overall financial performance and growth strategy.
It is also important to note that these expenses can fluctuate from year to year. Changes in these expenses may reflect strategic decisions made by Belocal, such as increased investment in marketing or changes in personnel. A prospective franchisee should inquire about the reasons for any significant changes in these expenses and how they might impact the franchise system.