What were the total operating expenses for Casa De Corazon in 2022?
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 | - - - - |
| Consulting and professional fees | 61,552 5.2 | 188,865 22.7 59,865 7.5 |
| Total operating expenses | 976,788 83.3 | 946,181 113.6 731,057 91.3 |
| Income (loss) from operations | 182,954 15.6 | (152,839) ( 18.3) 61,348 7.7 |
| Other income (expense) | ||
| Rewards income | 2,481 .2 | 2 ,704 .3 2 ,317 .3 |
| Interest income | 18,932 1.6 | 14,188 1.7 - - |
| Total other income (expense) | 21,413 1.8 | 16,892 2.0 2 ,317 .3 |
| Net income (loss) | 204,367 17.4 % | (135,947) ( 16.3) % 63,665 8.0 % |
| Member's equity | ||
| Beginning of year | 49,159 | 164,697 216,032 |
| Capital contributions | 65,000 | 20,409 - |
| Distributions | - | - (115,000) |
| End of year | $ 318,526 | $ 49,159 $ 164,697 |
Source: Item 23 — RECEIPTS (FDD pages 51–215)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the total operating expenses for the company in 2022 were $731,057, representing 91.3% of total revenues. This figure includes various 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, corporate overhead allocation, and consulting and professional fees. These expenses are crucial for the day-to-day operations and strategic development of Casa De Corazon.
For a prospective franchisee, understanding the breakdown of these operating expenses is essential for financial planning. Advertising, for instance, accounted for $303,582 in 2022, indicating a significant investment in marketing efforts. Management fees, which totaled $239,746, cover executive oversight, strategic planning, and administrative support provided by Casa de Corazon, Inc., a related entity. Insurance costs were $17,190, reflecting the necessary coverage for business operations. Technology fees amounted to $40,641, highlighting the importance of technology in running the franchise.
It's important to note that these figures are based on Casa Franchising, LLC's financial statements and may not directly translate to the operating expenses of an individual franchise location. However, they provide a valuable benchmark for understanding the types and relative magnitude of expenses a franchisee might encounter. Prospective franchisees should carefully review these expenses and consider how they might vary based on their specific location, market conditions, and business strategies. Consulting with financial advisors and existing Casa De Corazon franchisees can provide further insights into managing operating expenses effectively.