Does the Best Brains financial statement for December 31, 2023, show any expenses?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
IES AND STOCKHOLDERS' EQUITY | 4,336,162 | | Current Liabilities | | | | Account and credit card payable | 4,116,083 | 3,545,720 | | Mortgages, notes, bonds payable within 1 year | 157,834 | 50,129 | | Deferred franchise revenue - Current | 111,920 | 45,025 | | Other current liabilities | 157,392 | 170,701 | | Total Liabilities | 4,543,229 | 3,811,576 | | Non-Current Liabilities | | | | Mortgages, notes, bonds payable in 1 year or more | 300,090 | 94,311 | | Economic injury disaster loan (EIDL) | 150,000 | 150,000 | | Deferred franchise revenue - Non-current | 402,161 | 91,143 | | Total Non-current Liabilities | 852,251 | 335,454 | | Stockholders' Equity | | | | Common stock | 1,000 | 1,000 | | Additional paid in capital | 121,375 | 121,375 | | Retained earnings | 77,883 | 66,758 | | Total Stockholders' Equity | 200,258 | 189,133 | | Total Liabilities And Stockholders' Equity | $ 5,595,738 | $ 4,336,162 | | | | |
STATEMENT OF OPERATIONS Years Ended December 31, 2024, and 2023
| | December 31, 2024 | December 31, 2023 | |-----
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the company's financial statement for the year ending December 31, 2023, does indeed list various expenses. The statement includes a detailed breakdown of expenses, offering insight into where Best Brains allocates its financial resources.
Specifically, the expenses listed for the year ending December 31, 2023, include software expenses totaling $893,316, payroll expenses amounting to $1,124,746, material development charges of $892,640, and contractor's payments of $317,037. Additionally, Best Brains incurred advertising and marketing expenses of $311,486, supply costs of $283,847, rent expenses of $286,147, legal and professional fees of $222,915, office expenses of $205,009 and travel expenses of $203,700. Other expenses included outside services for $768,500, insurance costs of $120,390, interest expenses of $14,001 and payroll taxes of $85,900.
This level of detail in Best Brains' financial statements is typical for franchise FDDs, as it allows potential franchisees to assess the financial health and stability of the franchisor. Reviewing these expenses can help a prospective Best Brains franchisee understand the costs associated with running the franchise and evaluate the franchisor's financial management practices.