What was the net income for Corner Bakery Cafe in 2024?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
Total liabilities and member equity | $ | 6,465,020 | $ | 6,444,201 |
Statement of Operations For the Reporting Periods ended December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Revenues: | ||
| Franchise royalty fees, net | $ 3,194,479 | $ 1,854,746 |
| Advertising fund fees | 1,538,326 | 893,409 |
| Other franchise fees | 151,851 | 33,117 |
| Total revenues | 4,884,656 | 2,781,272 |
| Expenses: | ||
| Selling, general and administrative expenses | 1,046,864 | 213,555 |
| Advertising fund expenses | 1,011,347 | 893,409 |
| Management fees | 1,637,548 | 944,460 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, the net income for the company in 2024 was $146,625. This figure represents the profit Corner Bakery Cafe retained after deducting all expenses from its total revenues for the year. In comparison, the net income for the previous period in 2023 was $30,585, indicating a significant increase in profitability year over year.
For a prospective franchisee, net income is a critical indicator of the financial health and potential profitability of the franchisor. A higher net income suggests that the franchisor is managing its operations effectively and generating substantial profits from its franchise system. This can be reassuring for franchisees, as it implies that the franchisor has a sustainable business model and is capable of supporting its franchisees.
However, it is important to note that the net income of the franchisor does not directly translate to the potential earnings of an individual franchise location. A franchisee's profitability will depend on various factors, including location, operating costs, sales volume, and management skills. Therefore, while the franchisor's net income provides valuable insight into the overall health of the franchise system, prospective franchisees should conduct their own financial analysis and due diligence to assess the potential profitability of their specific franchise location.
Furthermore, the FDD also includes additional financial statements, such as the balance sheet and cash flow statement, which provide a more comprehensive view of Corner Bakery Cafe's financial position. Reviewing these statements can offer further insights into the company's assets, liabilities, and cash flow management, helping potential franchisees make a more informed investment decision.