What were the finance costs for Best Brains for the year ended December 31, 2022?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Particulars | Schedule No. | Year Ended December 31, 2023 | Year Ended December 31, 2022 |
|---|---|---|---|
| Income: | |||
| Revenue From Operations | 9 | 6,133,087.75 | 4,558,762.03 |
| Other Income | 10 | 47,338.52 | 319,955.18 |
| Total Income | 6,180,426.27 | 4,878,717.21 | |
| Expenses: | |||
| Finance Costs | 11 | 30,503.42 | 12,271.27 |
| Depreciation/Amortization expense | 54,176.42 | 30,529.00 | |
| Operating and other expenses | 12 | 6,052,573.26 | 4,641,772.06 |
| Total Expenses | 6,137,253.10 | 4,684,572.33 | |
| Profit /(Loss) for the Year ( Before | Tax) | 43,173.17 | 194,144.88 |
| Federal Income Tax paid | 7,583.00 | 30,095.00 | |
| State Income Tax paid | 40,395.40 | 11,448.00 | |
| Profit /(Loss) for the Year ( After Ta | ax) | (4,805.23) | 152,601.88 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the finance costs for the year ended December 31, 2022, were $12,271.27. This figure represents the expenses Best Brains incurred related to financing activities during that year.
For a prospective franchisee, understanding the franchisor's finance costs can provide insight into the financial health and stability of the company. It's important to note that these costs reflect Best Brains' corporate level expenses and may not directly translate to the costs a franchisee will incur in operating their individual center. However, it can be useful to compare these costs with previous years to identify any trends or potential financial challenges the company may be facing.
Reviewing the complete financial statements and notes, including details on any loans or related-party transactions, will give potential franchisees a more comprehensive understanding of Best Brains' financial position. Consulting with a financial advisor is recommended to assess the financial implications for their specific franchise investment.