What was the net income (loss) for Boulder Designs in 2023?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
135,967 | 183,606 | | General and administrative expenses | 1,250,875 | 1,301,065 | 1,266,488 | | | 2,192,873 | 2,251,831 | 2,055,860 | | Operating income (loss) | 136,924 | (662,471) | 108,254 | | Interest expense | (14,073) | (21,578) | (4,884) | | Other expense | (28,000) | (31,696) | (36,241) | | Net income (loss) | 94,851 | (715,745) | 67,129 | | Member's deficit, beginning of year | (3,810,894) | (2,996,967) | (2,779,329) | | Contributions from member | 87,889 | 259,214 | 403,269 | | Distributions to member | (493,883) | (357,396) | (688,036) | | Member's deficit, end of year | $ (4,122,037) | (3,810,894) | (2,996,967) |
Statements of Cash Flows
Years Ended December 31,
| _ | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 94,851 | (715,745) | 67,129 |
| Adjustments to reconcile net income (loss) to net | · | , , , | · | |
| cash from operating activities: | ||||
| Depreciation and amortization | 25,731 | 24,988 | 25,680 | |
| Provision for credit losses | 86,025 | 30,799 | 13,287 | |
| Impairment loss on acquired franchise | ||||
| agreements | 28,000 | 30,000 | 30,000 | |
| Changes in operating assets and liabilities: | ||||
| Franchise fees receivable | 70,103 | (503,303) | (11,365) | |
| Inventory | 61,051 | 27,531 | 21,766 | |
| Deferred costs | 75,212 | (15,134) | (115,101) | |
| Other receivables | (2,932) | (868) | (700) | |
| Trade accounts payable and | ||||
| accrued expenses | 6,111 | (210,366) | 298,101 | |
| Deferred franchise fees | _ | 243,044 | 1,702,881 | 84,557 |
| Net cash provided by operating activities | 687,196 | 370,783 | 413,354 | |
| Cash flows from investing activities: | ||||
| _ | 30,986 | (6,331) | ||
| Advances to (repayments from) related party | - | (20,000) | (204,500) | |
| Payments for acquired franchises Capital expenditures | (8,860) | (20,000) | (8,244) | |
| _ | (0,000) | (0,244) | ||
| Net cash provided by (used in) investing activities | (8,860) | 10,986 | (219,075) | |
| investing activities | _ | (8,800) | 10,780 | (217,075) |
| Cash flows from financing activities: | ||||
| Proceeds from iss |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the company experienced a net loss in 2023. Specifically, the net income (loss) for Boulder Designs in 2023 was ($715,745). This figure is part of a broader financial statement that includes revenues, expenses, and cash flow information for the years 2022, 2023, and 2024.
For a prospective franchisee, this net loss figure is a critical data point for assessing the financial health and stability of Boulder Designs. A significant loss in a recent year could raise concerns about the franchisor's ability to support its franchisees, invest in system improvements, or maintain brand standards. It is essential to understand the reasons behind this loss and whether the company has taken steps to address the issues that led to it.
It's also important to consider the context of this loss within the company's overall financial performance. While 2023 showed a substantial loss, Boulder Designs had a net income of $67,129 in 2022 and $94,851 in 2024. Reviewing these trends helps to determine if the 2023 loss was an anomaly or part of a recurring pattern. Prospective franchisees should inquire about the factors contributing to these fluctuations and the franchisor's strategies for ensuring consistent profitability.
In addition to net income, the FDD provides details on revenues and expenses. In 2023, Boulder Designs had total revenues of $1,589,360, comprised of franchise fees and royalties ($420,131), equipment sales ($763,122), and supplies and other revenue ($406,107). Total expenses amounted to $2,251,831, resulting in an operating loss of ($662,471). Interest expense was ($21,578), and other expenses were ($31,696). Analyzing these components of the income statement can provide further insights into the financial drivers and challenges faced by Boulder Designs.