What was the net income for Bor Restoration in 2022?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
|
| Accounts payable | $ 485 | $ 19 | $ 5,495 | | Accrued expenses | 12,128 | 14,993 | 13,355 | | Deferred revenue | | 94,350 | | | Lease liability | 50,580 | | | | Total Current Liabilities | 63,193 | 109,362 | 18,850 | | Non-current Liabilities: | | | | | Lease liability | 31,861 | | | | Total Liabilities | 95,054 | 109,362 | 18,850 | | Owner's Equity: | | | | | Paid in capital | 1,000 | 1,000 | 1,000 | | Retained earnings | 637,797 | 303,641 | 219,953 | | Total Owner's Equity | 638,797 | 304,641 | 220,953 | | TOTAL LIABILITIES AND OWNER'S EQUITY | $ 733,851 | $ 414,003 | $ 239,803 |
| 2022 | 2021 | 2020 |
|---|
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the net income for 2022 was $386,160. This figure represents the company's profit after deducting all operating expenses from its total revenue for that year. This information is derived from the statement of operations included in the FDD. The net income is a key indicator of Bor Restoration's financial performance and overall profitability during the specified period.
Specifically, the total revenue for Bor Restoration in 2022 was $1,220,722, which was composed of franchise fees ($181,000), opening franchise equipment package revenue ($314,674), royalties ($421,930), and technology and support fees ($303,118). The total operating expenses amounted to $834,562, including franchise support expenses ($218,104), general and administrative expenses ($592,756), and marketing expenses ($23,702). The difference between the total revenue and total operating expenses resulted in the net income of $386,160.
For a prospective franchisee, understanding Bor Restoration's net income and its components (revenue streams and operating expenses) is crucial. It provides insight into the financial health and stability of the franchisor. Reviewing these figures in comparison to previous years (2021 and 2020, which show net incomes of $420,082 and $291,217 respectively) can reveal trends and potential areas of growth or concern. It is important to note that past performance does not guarantee future results, but it offers a valuable benchmark for assessing the franchise's potential.