What was the net income for Best Brains in the year 2024?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 taxes | 104,997 | 85,900 |
| Depreciation | 77,662 | 54,176 |
| Shipping and customs | 74,549 | 76,848 |
| Dues and subscriptions | 58,659 | 40,966 |
| Repairs and maintainence | 54,803 | 42,157 |
| Postage | 50,279 | 36,227 |
| Meals and entertainment | 47,496 | 70,512 |
| Commission expense | 29,473 | 22,111 |
| Taxes and license | 9,998 | 55,798 |
| Bank and merchant processing fees | 29,268 | 31,986 |
| Utilities | 25,095 | 13,583 |
| 24,194 | (1,440) | |
| Event expense | ||
| Automobile expense | 11,551 | - |
| Telephone | 7,010 | 5,785 |
| Licenses and permits | 6,056 | 262 |
| Contribution | 1,213 | 4,351 |
| Total Expenses | 8,592,366 | 6,182,958 |
| Income From Operation | 141,168 | (47,617) |
| Other Income (expense) | ||
| Gain/Loss on sale of asset, net | (1,543) | 42,812 |
| Interest Income | - | - |
| Total Other Income (expense |
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. for the year ending December 31, 2024, was $139,625. This figure is derived from the audited financial statements included in the FDD. The FDD also includes a comparative figure for the year ending December 31, 2023, which shows a net loss of $4,805.
It's important to note that these figures reflect the financial performance of Best Brains Inc. itself, not the performance of individual franchise locations. Prospective franchisees should not expect to achieve the same level of net income, as their own financial results will depend on factors such as location, operating costs, and local market conditions. The FDD also includes an unaudited Profit & Loss Statement for the time period January 1, 2025 – March 31, 2025.
The presence of audited financial statements for 2024 and 2023 provides a degree of assurance regarding the accuracy and reliability of the reported figures. However, franchisees should still conduct their own due diligence and consult with financial advisors to assess the potential profitability of a Best Brains franchise in their specific circumstances. Understanding the franchisor's financial performance can offer insights into the stability and potential support a franchisee might expect.
Furthermore, the FDD includes additional financial statements and related notes, such as the statement of cash flows and details regarding related party transactions, which can provide a more comprehensive understanding of Best Brains' financial health. Reviewing these statements in detail is advisable for any prospective franchisee.