What was the total amount of general and administrative expenses for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
AND STOCKHOLDERS' EQUITY | $ 1,531,733 | | Page | | | 4 | |
CLOSETS UNLIMITED OF NEW JERSEY, INC. STATEMENT OF OPERATIONS AND RETAINED EARNINGS YEAR ENDED DECEMBER 31, 2023
| REVENUES | $ | 4,407,422 |
|---|---|---|
| COST OF SALES | 1,645,190 | |
| GROSS PROFIT | _ | 2,762,232 |
| GENERAL AND ADMINISTRATIVE EXPENSES | ||
| Administrative | 2,336,963 | |
| Depreciation | 45,794 | |
| Amortization | 30,000 | |
| TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 2,412,757 | |
| INCOME FROM OPERATIONS | 349,475 | |
| OTHER INCOME (EXPENSE) | ||
| Interest expense | (22,390) | |
| Interest income | 2,693 | |
| ERTC expense | (61,808) | |
| _ | (81,505) | |
| NET INCOME BEFORE INCOME TAXES | 267,970 | |
| INCOME TAX |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the total general and administrative expenses for the year ended December 31, 2022, amounted to $2,412,757. This figure encompasses several components, including administrative costs of $2,336,963, depreciation expenses of $45,794, and amortization expenses of $30,000. These expenses are a key indicator of the operational overhead required to run Closet Storage Concepts.
For a prospective franchisee, understanding the breakdown of these expenses is crucial. Administrative costs likely include salaries, office supplies, and other day-to-day operational costs. Depreciation refers to the reduction in value of assets over time, while amortization relates to the spreading out of costs for intangible assets. These figures provide insight into the financial health and operational efficiency of Closet Storage Concepts.
It's important for potential franchisees to compare these expenses with those of other similar franchises to gauge whether Closet Storage Concepts' overhead is competitive. Additionally, franchisees should inquire about specific strategies the company employs to manage and potentially reduce these expenses, as lower overhead can contribute to higher profitability for both the franchisor and the franchisee.