What was the net income for Best Brains, according to the distribution account?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Service/Fee Income | $48,145.00 | | Support Services | 21,155.00 | | Training Income | 10,500.00 | | Tuition Fee | 1,276,202.80 | | Total for Income | $3,430,525.33 | | Cost of Goods Sold | | | Gross Profit | $3,430,525.33 | | Expenses | | | Advertising and Promotion | 91,044.46 | | Automobile | 2,438.01 | | Bank Service Charge | 17,538.82 | | BusinessDevelopment-AfterSchool | 19.03 | | Contributions | 356.00 | | Dues and Subscriptions | 10,051.96 | | Elearning Expenses | 4,505.19 | | Forte Fee | 2,196.98 | | General Liability Insurance | 7,952.00 | | Interest Expense | 22,381.47 | | IT Support | 415,492.20 | | Janitorial | 2,344.24 | | Legal & Professional Fees | 5,238.00 | | Licenses&Permits | 253.69 | | Marketing Expenses | 119.40 | | Material Development | 626,100.00 | | Meals and Entertainment | 10,988.97 | | Office Supplies | 76,045.76 | | Outside Services | 18,772.93 | | PayPal Fees | 202.49 |
Profit and Loss
Best Brains Inc
January-March, 2025
| DISTRIBUTION ACCOUNT | TOTAL |
|---|---|
| Payroll Expenses | -$2,956.35 |
| 1099 | 13,335.23 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the net income reported in the distribution account is $8,842.18. This figure represents the company's earnings after deducting all expenses, including advertising and promotion, automobile costs, bank service charges, business development, contributions, dues and subscriptions, elearning expenses, Forte fees, general liability insurance, interest expense, IT support, janitorial services, legal and professional fees, licenses and permits, marketing expenses, material development, meals and entertainment, office supplies, outside services, PayPal fees, payroll expenses, penalty fees, postage, printing charges, professional fees, recruitment expenses, reimbursements, rent expense, repairs and maintenance, shipping and customs, subcontractors, support services, taxes, telephone, travel expenses, tuition fee reimbursement, and utilities, from its total income. The total income for Best Brains was $3,430,525.33, while the total expenses amounted to $3,302,923.16. Additionally, other expenses, specifically 'Ask My Accountant,' totaled $118,759.99, resulting in a net other income of -$118,759.99.
For a prospective Best Brains franchisee, understanding the net income is crucial as it reflects the overall financial health and profitability of the company. A positive net income suggests that the company is managing its finances effectively and generating profit from its operations. However, it is essential to consider the various factors contributing to the net income, such as revenue streams, cost of goods sold, and operating expenses, to gain a comprehensive understanding of the company's financial performance. Franchisees should also analyze the trends in net income over multiple years to assess the company's long-term financial stability and growth potential.
It's important to note that the distribution account provides a detailed breakdown of income and expenses, offering valuable insights into the financial operations of Best Brains. Franchisees can use this information to benchmark their own performance and identify areas for improvement in their own businesses. Additionally, understanding the specific expenses incurred by the company, such as advertising and promotion, IT support, and material development, can help franchisees make informed decisions about resource allocation and investment in their own centers.
Prospective franchisees should carefully review the distribution account and other financial statements provided in the FDD to assess the financial viability of the Best Brains franchise opportunity. Consulting with a financial advisor or accountant is also recommended to gain a professional opinion on the company's financial performance and potential risks and rewards associated with investing in the franchise.