What was the consolidated net (loss) income for Chem Dry in the first year presented in the table?
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 (loss) income for the earliest year presented in the table is $2,941. The table provides financial data for the years ended December 31, 2023, 2022, and 2021. The consolidated net (loss) income reflects the overall profitability of Chem Dry during that period, with 2021 showing a net income of $2,941.
For a prospective franchisee, this information is crucial for understanding the financial performance of Chem Dry over the past three years. While 2021 shows a net income, it's important to consider the context of subsequent years. The table also shows a net loss for 2022 and 2023. Reviewing these trends helps potential franchisees assess the stability and growth potential of the franchise.
It is important to note that these figures represent consolidated results, which may include revenue and expenses from company-owned operations as well as franchise operations. A potential franchisee should investigate further to understand the factors contributing to the fluctuations in net income/loss and how these trends might impact their individual franchise's performance. Understanding the reasons behind these financial results is essential for making an informed investment decision.