What was the reported net loss for Bhc?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Gross Profit | 1,023,504 | | Operating Expenses | 2,481,699 | | Loss from Operations | (1,458,195) | | Other Income (Expenses): | | | Interest income | 62 | | Interest expense | (41,602) | | Other expense, net | (353) | | Loss on inventory | (27,257) | | Total Other Income (Expenses) | (69,150) | | Loss before Income Tax | (1,527,345) | | Income Tax Provision | (2,400) | | Net Loss | (1,529,745) | | Other Comprehensive Income | 0 | | Total Comprehensive Loss | $ (1,529,745) |
YEAR ENDED DECEMBER 31, 2024
| Capital Contribution | 760,000 |
|---|---|
| Net Loss | (1,529,745) $ |
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the company experienced a net loss of $1,529,745. This figure is part of the consolidated financial statements which include BHC USA LLC and its subsidiaries. The net loss is a significant indicator of the company's financial performance during the specified period.
For a prospective franchisee, this net loss figure is an important consideration. While a single year's loss doesn't necessarily indicate long-term instability, it warrants further investigation. Potential franchisees should inquire about the reasons for the loss, such as startup costs, market conditions, or specific strategic decisions made by Bhc. Understanding the context behind the loss can provide a clearer picture of the financial health and future prospects of the franchise.
Furthermore, the FDD provides additional financial details that can help contextualize this loss. Adjustments to reconcile the net loss to net cash used by operating activities include depreciation ($237,303), amortization of right-of-use assets ($155,509), and changes in assets and liabilities. Reviewing these adjustments can offer insights into the non-cash expenses and working capital changes that contributed to the reported net loss. It is also important to note that the company had income tax benefits of $427,406, which were fully offset by a valuation adjustment, resulting in no tax benefit presented on the financial statements.