What was the gross profit for Casa De Corazon in 2024?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31 | ||
|---|---|---|
| 2024 | 2023 2022 | |
| Amount Percent | Amount Percent Amount Percent | |
| Revenues | ||
| Franchise fees | $ 24,747 2.1 % | $ 69,111 8.3 % $ 2 70 - % |
| Brand fund fees | 386,181 32.9 | 316,551 38.0 333,990 41.7 |
| Royalty fees | 747,189 63.7 | 434,181 52.2 448,961 56.2 |
| Technology fees | 10,000 .9 | - - - - |
| Training fees | 4,678 .4 | 12,368 1.5 14,297 1.8 |
| Sales of products | - - | - - 2 ,776 .3 |
| Total revenues | 1,172,795 100.0 | 832,211 100.0 800,294 100.0 |
| Cost of goods sold | ||
| Franchise curriculum | 13,053 1.1 | 38,869 4.7 7 ,889 1.0 |
| Total cost of goods sold | 13,053 1.1 | 38,869 4.7 7 ,889 1.0 |
| Gross profit | 1,159,742 98.9 | 793,342 95.3 792,405 99.0 |
| Operating expenses | ||
| Bank charges | 70 - | 2 5 - - - |
| Credit loss expense | - - | 9 ,728 1.2 - - |
| Office supplies | 1,061 .1 | 1 ,004 .1 1 95 - |
| Meals | 76 - | - - - - |
| Dues and memberships | 600 - | - - 3 ,690 .5 |
| Insurance | 22,169 1.9 | 19,165 2.3 17,190 2.1 |
| Advertising | 276,136 23.5 | 264,633 31.8 303,582 37.9 |
| Background checks | 6,766 .6 | 8 ,695 1.0 8 90 .1 |
| Business development | 9,000 .8 | 12,140 1.5 20,628 2.6 |
| Technology fees | 77,393 6.6 | 74,280 8.9 40,641 5.1 |
| Training | 6,030 .5 | 8 ,728 1.0 8 ,232 1.0 |
| Commissions | 2,007 .2 | - - 7 ,000 .9 |
| Travel | 20,539 1.8 | 16,096 1.9 13,629 1.6 |
| Miscellaneous | 32,548 2.8 | 16,913 2.0 15,769 2.0 |
| Management fees | 422,097 36.0 | 325,909 39.2 239,746 30.0 |
| Corporate overhead allocation | 38,744 3.3 | - - |
Source: Item 23 — RECEIPTS (FDD pages 51–215)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the company's gross profit for the year 2024 was $1,159,742. This figure represents the total revenues of $1,172,795 less the total cost of goods sold, which was $13,053. The gross profit margin for 2024 was 98.9%.
Gross profit is a key indicator of a company's profitability, showing how efficiently it manages its production costs. For a prospective Casa De Corazon franchisee, understanding the gross profit margin is crucial because it indicates the potential earnings after covering the direct costs associated with the services or products they offer. A higher gross profit margin suggests that the franchise is effective at controlling costs and has the potential for strong profitability.
It's important to note that this gross profit figure does not account for operating expenses such as bank charges, credit loss expense, office supplies, meals, dues and memberships, insurance, advertising, background checks, business development, technology fees, training, commissions, travel, miscellaneous expenses, management fees, and corporate overhead allocation. These operating expenses would further reduce the profit to arrive at the net income. Therefore, while the gross profit provides a positive outlook, franchisees should also consider these additional expenses when evaluating the overall financial health and potential profitability of a Casa De Corazon franchise.
When evaluating a franchise opportunity, prospective franchisees should examine not only the gross profit but also the trends in revenue and expenses over multiple years to gain a comprehensive understanding of the franchise's financial performance. Comparing these figures with industry benchmarks can also provide valuable insights into the competitiveness and efficiency of the Casa De Corazon franchise model.