What was the operating income (loss) for Boulder Designs in 2024?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
of long-term debt | 13,971 | 20,793 | | Accounts payable | 191,886 | 291,188 | | Accrued expenses | 293,743 | 188,330 | | Deferred revenue, current | 909,641 | 843,033 | | Total current liabilities | 1,657,241 | 1,598,344 | | Long-term debt, excluding current portion | 571,730 | 528,240 | | Deferred revenue, net of current portion | 3,111,996 | 2,935,560 | | Due to related parties | 272,385 | 390,774 | | Total liabilities | 5,613,352 | 5,452,918 | | Member's deficit | (4,122,037) | (3,810,894) | | Total liabilities and member's deficit | $1,491,315 | 1,642,024 |
See accompanying notes to financial statements.
Statements of Operations and Member's Deficit Years Ended December 31,
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues: | |||
| Franchise fees and royalties | $ 1,297,293 | 420,1 |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the operating income for 2024 was $136,924. This figure represents the company's earnings from its core business operations before accounting for interest expense and other expenses. In comparison, Boulder Designs experienced an operating loss of $662,471 in 2023 and an operating income of $108,254 in 2022.
The operating income is calculated by subtracting the total expenses from the total revenues. For 2024, Boulder Designs had total revenues of $2,329,797 and total expenses of $2,192,873. The revenues include franchise fees and royalties amounting to $1,297,293, equipment sales of $622,295, and supplies and other revenues of $410,209. The expenses consist of the cost of equipment and supplies at $527,346, licensing fees of $262,231, selling and marketing expenses of $152,421, and general and administrative expenses of $1,250,875.
For a prospective franchisee, this information provides insight into the financial performance of Boulder Designs. A positive operating income suggests that the company's business model is profitable at its core. However, it's important to consider other factors such as interest and other expenses, which can impact the net income. Reviewing the trend over the three years (2022-2024) offers a more comprehensive understanding of the company's financial stability and growth potential. Franchisees should also compare these figures with industry benchmarks to assess Boulder Designs' performance relative to its competitors.
It is important to note that while operating income provides a snapshot of profitability, it does not reflect the overall cash flow situation. As such, prospective franchisees should also review the cash flow statement to understand how the company generates and uses cash. Additionally, the net income (loss) figure, which accounts for all revenues and expenses, provides a more complete picture of the company's financial health. In 2024, Boulder Designs had a net income of $94,851.