What was the net income for Best Brains as of December 31, 2023?
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 | |
|---|---|---|
| Revenue | ||
| Franchise fees | $ 77,987 | $ 75,983 |
| Royalty Income | 4,075,600 | 3,502,324 |
| Tuition fees | 1,101,650 | - |
| Material charges | 2,824,687 | 1,974,379 |
| Other operating income | 653,611 | 582,654 |
| Gross Income | 8,733,534 | 6,135,341 |
| Expenses | ||
| Software expense | 1,107,354 | 893,316 |
| Payroll expense | 1,364,838 | 1,124,746 |
| Tuition Fee Reimbursement | 1,103,757 | - |
| Material development charges | 895,686 | 892,640 |
| Contractor's payment | 842,453 | 317,037 |
| Bad debt | 464,041 | - |
| Advertising and marketing | 441,906 | 311,486 |
| Supplies | 381,648 | 283,847 |
| Rent | 275,834 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the income from operations as of December 31, 2023, was a loss of $47,617. This figure is calculated by subtracting total expenses of $6,182,958 from the gross income of $6,135,341.
For a prospective franchisee, this indicates that Best Brains' operations resulted in a loss for the specified period. It is important to note that this figure does not account for other income or expenses that the company may have incurred.
It is also important to consider that the net income can be affected by various factors, such as software expenses, payroll expenses, tuition fee reimbursements, material development charges, contractor's payments, bad debt, advertising and marketing, supplies, rent, legal and professional fees, office expenses, travel, outside services, insurance, interest expense, payroll taxes, depreciation, shipping and customs, dues and subscriptions, repairs and maintenance, postage, meals and entertainment, commission expense, taxes and licenses, bank and merchant processing fees, utilities, event expense, automobile expense, telephone, licenses and permits and contribution. These expenses totaled $6,182,958 for the year ending December 31, 2023. A prospective franchisee should investigate the reasons for the loss and whether this is a typical result or if there were unusual circumstances during that period.