What was the net income for Best Brains as of December 31, 2024?
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 | 286,147 |
| Legal and professional fees | 271,716 | 222,915 |
| Office expense | 248,265 | 205,009 |
| Travel | 157,219 | 203,700 |
| Outside services | 147,209 | 768,500 |
| Insurance | 140,216 | 120,390 |
| Interest expense | 137,921 | 14,001 |
| Payroll tax |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the net income for Best Brains Inc. as of December 31, 2024, was $139,625. This figure represents the company's profit after all revenues and expenses, including provisions for taxes, have been accounted for during the specified period. This is a significant increase compared to the net income as of December 31, 2023, which was $(4,805), indicating a positive financial turnaround for the company.
For a prospective Best Brains franchisee, this net income figure is an important indicator of the franchisor's financial health and stability. A positive and increasing net income suggests that the company is managing its operations effectively and generating profits. This can instill confidence in potential franchisees, as it implies that Best Brains has a sustainable business model and is capable of supporting its franchisees. However, it is essential to consider this figure in conjunction with other financial metrics and qualitative factors, such as the company's growth strategy and competitive landscape.
It's also important to note that these figures are based on audited financial statements, providing a higher level of assurance regarding their accuracy and reliability. The audit was conducted in accordance with auditing standards generally accepted in the United States of America, and an independent auditor has expressed an opinion that the financial statements present fairly the financial position of Best Brains. Prospective franchisees should review the complete financial statements and auditor's report to gain a comprehensive understanding of Best Brains' financial performance and condition.