What was the profit or loss for Best Brains before tax for the year ended December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Particulars | Schedule No. | Year Ended December 31, 2023 | Year Ended December 31, 2022 |
|---|---|---|---|
| Income: | |||
| Revenue From Operations | 9 | 6,133,087.75 | 4,558,762.03 |
| Other Income | 10 | 47,338.52 | 319,955.18 |
| Total Income | 6,180,426.27 | 4,878,717.21 | |
| Expenses: | |||
| Finance Costs | 11 | 30,503.42 | 12,271.27 |
| Depreciation/Amortization expense | 54,176.42 | 30,529.00 | |
| Operating and other expenses | 12 | 6,052,573.26 | 4,641,772.06 |
| Total Expenses | 6,137,253.10 | 4,684,572.33 | |
| Profit /(Loss) for the Year ( Before | Tax) | 43,173.17 | 194,144.88 |
| Federal Income Tax paid | 7,583.00 | 30,095.00 | |
| State Income Tax paid | 40,395.40 | 11,448.00 | |
| Profit /(Loss) for the Year ( After Ta | ax) | (4,805.23) | 152,601.88 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the profit or loss before tax for the year ended December 31, 2023, was $43,173.17. This figure is derived from the financial statements included in the FDD, which provide a summary of Best Brains' financial performance over the past few years. These statements were audited by Anil Malhotra & Co LTD, Certified Public Accountants.
Specifically, the FDD outlines that Best Brains' total income for the year ended December 31, 2023, was $6,180,426.27, which includes revenue from operations amounting to $6,133,087.75 and other income of $47,338.52. During the same period, Best Brains incurred total expenses of $6,137,253.10, encompassing finance costs of $30,503.42, depreciation/amortization expenses of $54,176.42, and operating and other expenses totaling $6,052,573.26. The difference between the total income and total expenses results in the profit before tax of $43,173.17.
It is important to note that Best Brains also paid federal income tax of $7,583.00 and state income tax of $40,395.40, resulting in a profit or loss after tax of ($4,805.23) for the year. Prospective franchisees should carefully review these financial statements and consider consulting with a financial advisor to understand the implications of Best Brains' financial performance.