What were the material charges for Best Brains for the year ending December 31, 2024?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Current Assets | ||
| Cash and cash equivalents | $ 219,342 | $ 285,979 |
| Due from related affiliates | 100,000 | 199,679 |
| Accounts Receivable | 2,444,879 | 2,038,407 |
| Advances | 140,891 | 140,891 |
| Inventory | 1,483,909 | 417,347 |
| Loan receivable | 666,477 | 942,746 |
| Other Current Assets | 6,926 | 15,822 |
| Total Current Assets | 5,062,424 | 4,040,872 |
| Fixed Asset | ||
| Building and equipment | 160,000 | 160,000 |
| Furniture and fixture | 121,927 | 119,417 |
| Vehicles | 545,919 | 246,030 |
| Less:Accumulated depreciation | (331,132) | (278,956) |
| Total Fixed Asset | 496,714 | 246,490 |
| Intangible Asset | 96,000 | 96,000 |
| Software development | ||
| Less:Accumulated amortization | (59,400) | (47,200) |
| 36,600 | 48,800 | |
| Total Assets | 5,595,738 LIABILITIES 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, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the material charges for the year ending December 31, 2024, amounted to $2,824,687. This figure reflects the expenses Best Brains incurred related to materials during that fiscal year. For comparison, the material charges for the year ending December 31, 2023, were $1,974,379.
This information is crucial for prospective franchisees as it provides insight into a significant component of Best Brains' operational expenses. Understanding the magnitude of material charges can help franchisees anticipate their own potential costs related to supplies and resources needed to run their Best Brains center. A substantial increase in material charges from 2023 to 2024 could indicate changes in the cost of goods, increased volume, or other factors that could impact a franchisee's profitability.
Prospective franchisees should analyze these figures in conjunction with other financial data provided in the FDD, such as revenue and royalty income, to gain a comprehensive understanding of Best Brains' financial performance. It would be prudent to inquire with Best Brains about the specific types of materials included in these charges and whether any changes are anticipated in the future that could affect costs. Understanding these trends will allow a franchisee to forecast expenses and manage their business effectively.