What was the rent expense for Best Brains for the year ending December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Current Assets | ||
| Cash and cash equivalents | $ 219,342 | $ 285,979 |
| Due from related affiliates | 100,000 | 199,679 |
| Accounts Receivable | 2,444,879 | 2,038,407 |
| Advances | 140,891 | 140,891 |
| Inventory | 1,483,909 | 417,347 |
| Loan receivable | 666,477 | 942,746 |
| Other Current Assets | 6,926 | 15,822 |
| Total Current Assets | 5,062,424 | 4,040,872 |
| Fixed Asset | ||
| Building and equipment | 160,000 | 160,000 |
| Furniture and fixture | 121,927 | 119,417 |
| Vehicles | 545,919 | 246,030 |
| Less:Accumulated depreciation | (331,132) | (278,956) |
| Total Fixed Asset | 496,714 | 246,490 |
| Intangible Asset | 96,000 | 96,000 |
| Software development | ||
| Less:Accumulated amortization | (59,400) | (47,200) |
| 36,600 | 48,800 | |
| Total Assets | 5,595,738 LIABILITIES 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the rent expense for the year ending December 31, 2023, was $286,147. This figure is part of the broader financial statements that Best Brains includes in its FDD to give potential franchisees an overview of the company's financial performance. Reviewing these expenses can help a prospective franchisee understand the overhead costs associated with operating the Best Brains franchise.
Rent expense is a significant factor in the overall profitability of a Best Brains center. Franchisees should consider the location and size of the learning center when evaluating this expense, as these factors can greatly influence the rent amount. Understanding the rent expense in relation to revenue is crucial for assessing the financial viability of a Best Brains franchise.
It's important for potential franchisees to compare this figure with their own projected rent expenses based on the location they are considering. They should also inquire about any factors that could influence rent, such as lease terms, renewal options, and potential rent increases. This due diligence will help franchisees make informed decisions about the financial aspects of their investment in a Best Brains franchise.