What was the profit/(loss) before tax for Best Brains 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/(loss) before tax for the year ended December 31, 2023, was $43,173.17. This figure represents the company's earnings before accounting for federal and state income taxes. A prospective franchisee can use this information to understand the financial performance of Best Brains during that period.
In comparison, the profit before tax for the year ended December 31, 2022, was $194,144.88. This shows a decrease in profit before tax from 2022 to 2023. A potential franchisee should investigate the reasons for this decrease to assess whether it was a one-time event or a continuing trend.
It's important to note that after accounting for federal and state income taxes, Best Brains experienced a loss of ($4,805.23) for the year ended December 31, 2023. This is a significant difference from the profit before tax and highlights the impact of income taxes on the company's net earnings. Franchisees should consider these figures in conjunction with other financial data and seek professional advice to fully understand the financial implications.