What was the consolidated net income for Chem Dry for the year ended December 31, 2021?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| Years Ended December 31, 2023, 2022, and 2021 | ||||
|---|---|---|---|---|
| 2023 | 2022 | 2021 | ||
| Net Revenue | $31,072 $ 33,483 | $ 36,232 | ||
| Cost of Revenue | 9,613 9,055 | 10,700 | ||
| Gross Profit | 21,459 24,428 | 25,532 | ||
| Operating Expenses Before Impairment | 20,604 27,789 | 23,079 | ||
| Impairment of Goodwill | 45,537 1,266 | - | ||
| Impairment of Intangible Assets | - 4,952 | - | ||
| Operating (Loss) Income | (44,682) | (9,579) | 2,453 | |
| Nonoperating Income (Expense) | ||||
| Interest income | 496 1,112 | 1,465 | ||
| Loss on disposal of property and equipment | - - | (27) | ||
| Other income | 386 268 | 269 | ||
| Total nonoperating income | 882 1,380 | 1,707 | ||
| (Loss) Income - Before income taxes | (43,800) | (8,199) | 4,160 | |
| Income Tax Expense (Recovery) (Note 11) | 477 (1,869) | 1,219 | ||
| Consolidated Net (Loss) Income | $ (44,277) | $ (6,330) | $ 2,941 |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the consolidated net income for the year ended December 31, 2021, was $2,941. This figure represents the company's profit after all expenses, including taxes, have been deducted from its revenues. This information is derived from the consolidated statement of operations, which provides an overview of the company's financial performance over a period of time.
For a prospective Chem Dry franchisee, understanding the consolidated net income is crucial as it reflects the overall financial health and profitability of the company. A positive net income, such as the one reported for 2021, generally indicates that the company is operating efficiently and generating profits. This can be a reassuring factor for potential franchisees, as it suggests that the franchisor is stable and capable of supporting its franchisees.
However, it's important to consider this figure in the context of other financial data provided in the FDD, such as revenues, expenses, and cash flows, over multiple years. Examining trends in net income can provide a more comprehensive understanding of the company's financial performance and potential risks or opportunities. For instance, the FDD also shows net losses for the years 2022 and 2023, so a franchisee should investigate the reasons for these losses and whether they are temporary or indicative of a longer-term issue.
Furthermore, prospective franchisees should compare Chem Dry's financial performance with that of other franchises in the same industry to assess its relative competitiveness and profitability. Consulting with a financial advisor or franchise expert can also provide valuable insights and guidance in evaluating the financial aspects of the franchise opportunity.