What was the total revenue for Better Blend in the year ended December 31, 2023?

According to Better Blend's 2024 Franchise Disclosure Document, the company's revenue consists of fees from franchised restaurants operated by conventional franchisees, including initial franchise fees, royalties based on a percentage of sales, marketing fees (up to 1% of gross revenue), and development fees. As of December 31, 2023, Better Blend had ten franchisees under contract, with four locations operational. Advertising expenses for the year totaled approximately $50,000.

For the year ended December 31, 2023, Better Blend's total revenues were $347,722. The cost of goods sold was $0, and the gross profit was $347,722. Operating expenses totaled $379,418, resulting in a loss from operations of $31,696. Other income was $1,000, and the net loss was $30,696.

Two customers accounted for 85% of Better Blend's total revenues and 69% of royalties and marketing fees receivable as of December 31, 2023. This concentration of revenue with a small number of customers represents a significant risk. If Better Blend loses one or both of these major customers, it could have a material adverse effect on the company's financial performance.

Prospective franchisees should carefully consider Better Blend's revenue sources, expenses, and customer concentration when evaluating the franchise opportunity. Understanding these financial aspects is crucial for assessing the potential profitability and risks associated with investing in a Better Blend franchise.