What was the total revenue for Bhc, including company-operated restaurant revenue, merchandise sales, franchise revenue, royalty, and franchise service fees?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
HEET DECEMBER 31, 2024
LIABILITIES AND MEMBER S EQUITY
| Accounts payable | $ 395,944 |
|---|---|
| Payroll and payroll tax payable | 68,852 |
| Sales tax payable | 17,510 |
| Deferred revenue | 42,343 |
| current portion | |
| Lease obligations | 154,905 |
| current portion | |
| Total Current Liabilities | 679,554 |
| Long-Term Liabilities: | |
| Customer deposit | 100,000 |
| Deferred revenue | 341,667 |
| Lease obligations | 768,903 |
| Total Long-Term Liabilities | 1,210,570 |
| Equity: | |
| quity | 839,898 |
| Equity | 839,898 |
| Total Liab | $ 2,730,022 |
| Equity |
CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 2024
| Company operated restaurant revenue | $ 1,314,783 | |-------------
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the total revenue for the company was $1,713,939, which includes revenue from company-operated restaurants, merchandise sales, franchise revenue, royalties, and franchise service fees. Company-operated restaurant revenue contributed the largest portion at $1,314,783. Merchandise sales accounted for $317,317, while franchise revenue was $35,433. Royalties amounted to $39,249, and franchise service fees totaled $7,157.
It's important to note that while Bhc generated $1,713,939 in total revenue, the company experienced a net loss of $1,529,745. This loss occurred after accounting for the cost of goods sold ($690,435) and operating expenses ($2,481,699). Additionally, other expenses, including interest and loss on inventory, further contributed to the overall net loss. This indicates that while revenue was generated from various sources, the expenses associated with running the business exceeded the income, resulting in a financial loss for the period.
A prospective franchisee should carefully consider these figures and conduct thorough due diligence to understand the factors contributing to the net loss. Understanding the cost structure, operating expenses, and strategies for improving profitability will be crucial for making an informed investment decision. It would be prudent to discuss these financial results with Bhc and seek clarification on their plans to address the losses and improve the financial performance of the franchise system.