What was the income from operations for Bevaris Alliance in 2022?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
nce payable | 25,927 | 1,500 | | System marketing reserve fund (Note 7) | • | 70 220 | | Line of credit (Note 6) | · | 72,220 | | , | 1,000 | 0.000 | | Due to related party (Note 8) | 9,069 | 86,938 | | TOTAL LIABILITIES | 245,395 | 189,530 | | MEMBER'S EQUITY: | | | | Member's equity | 112,862 | 170,724 | | | | | | TOTAL MEMBER'S EQUITY | 112,862 | 170,724 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | $ 358,257 | $ 360,254 |
| 2023 | 2022 | |
|---|---|---|
| REVENUE: | ||
| Franchise fees | $ 844,819 | $ 388,798 |
| Vending income | 1,205 | 839 |
| Other income | 1,900 | 310 |
| TOTAL REVENUE | 847,924 | 389,947 |
| EXPENSES: | ||
| Accounting | 19,737 | 19,415 |
| Advertising & marketing | 1,229 | 3,212 |
| Amortization expense | 14,656 | 6,107 |
| Auto expense | 541 | ===- |
| Bank service charges | 813 | 379 |
| Bookkeeping | 33,274 | - |
| Business licenses & permits | 2,280 | 177 |
| Computer & internet | 2,482 | 1,144 |
| Consulting | 153,520 | _ |
| Dues & subcriptions | . 373 | 1,041 |
| Vending food purchases | - | 827 |
| Management fees | 486,000 | 96,000 |
| Meals & entertainment | 595 | - |
| Insurance expense | 6,312 | _ |
| Interest | ||
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the income from operations for 2022 was $132,665. This figure represents the company's earnings before accounting for income taxes. In 2023, Bevaris Alliance experienced an income from operations loss of ($56,865).
For a prospective franchisee, understanding the income from operations is crucial as it provides insight into the core profitability of Bevaris Alliance's business model. It demonstrates the earnings generated from regular business activities before considering the impact of financial leverage or tax strategies. A positive income from operations suggests that the company is effectively managing its revenues and expenses related to its primary business functions.
The document also details the revenues and expenses that contribute to the income from operations. In 2022, Bevaris Alliance had total revenues of $389,947, consisting of franchise fees ($388,798), vending income ($839), and other income ($310). Total expenses amounted to $257,282, including management fees ($96,000), outside services ($109,190), amortization expense ($6,107), advertising & marketing ($3,212), and other expenses. Reviewing these figures can help a potential franchisee understand the various revenue streams and cost factors associated with operating a Bevaris Alliance franchise.
It's important to note that the income from operations can vary significantly from year to year, as seen by the shift from a profit of $132,665 in 2022 to a loss of ($56,865) in 2023. This fluctuation highlights the importance of conducting thorough due diligence and understanding the factors that can influence the company's financial performance. A prospective franchisee should investigate the reasons behind these changes and assess the potential risks and opportunities associated with investing in a Bevaris Alliance franchise.