What was the Franchise Fee Revenue for Crab N Spice in 2023?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
BER 31, 2022 & DECEMBER 31, 2021 PROFIT & LOSS STATEMENT CRAB N SPICE GROUP
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Revenue | |||
| Franchise Fee Revenue | $ 39,032 | $ 130,841 | $ 90,000 |
| Royalty | 66,981 | 35,309 | - |
| Services & Products | 16,319 | 46,565 | 28,240 |
| Total Revenue | 122,332 | 212,715 | 118,240 |
| Cost of Sales | 16,100 | 36,214 | 34,028 |
| Gross Profit | 106,232 | 176,501 | 84,212 |
| Operating Expense | |||
| Salaries & Wages Expense | 17,880 | - | - |
| Legal & Professional Fees | 18,484 | 91,040 | 33,013 |
| Travel Expense | 11,257 | 20,795 | 11,110 |
| Office Expense | 12,350 | 16,155 | 11,063 |
| Supplies & Materials Expense | 20,532 | 10,960 | 10,986 |
| Advertising & Marketing Expense | 53,460 | 42,058 | 5,398 |
| Total Operating Expenses | 133,963 | 181,008 | 71,570 |
| Net Income From Operations | (27,731) | (4,507) 12,642 | |
| Other Income (Expense) | |||
| Total Other Income (Expense) | - | - | - |
| Net Income Before Provision for Income Tax | (27,731) | (4,507) 12,642 | |
| Provision for Income T |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 40–50)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, the franchise fee revenue for 2023 was $39,032. The FDD also provides franchise fee revenue figures for the two prior years. In 2022, Crab N Spice reported $130,841 in franchise fee revenue, and in 2021, the franchise fee revenue was $90,000.
Franchise fee revenue represents the initial fees paid by new franchisees to Crab N Spice for the right to open and operate a franchise. This revenue can fluctuate from year to year based on the number of new franchise agreements signed. A significant drop in franchise fee revenue, as seen from 2022 to 2023, could indicate a slowdown in franchise sales, which may be a concern for prospective franchisees.
In addition to franchise fee revenue, the FDD also details other revenue streams for Crab N Spice, including royalty fees and revenue from services and products. In 2023, royalty revenue was $66,981, and revenue from services and products was $16,319. These figures, along with the franchise fee revenue, contributed to a total revenue of $122,332 for Crab N Spice in 2023. Reviewing these different revenue streams can provide a more complete picture of the financial health and stability of the Crab N Spice franchise system.
Prospective franchisees should carefully consider these revenue figures and trends, and compare them to industry benchmarks, to assess the potential risks and opportunities associated with investing in a Crab N Spice franchise. It's also important to investigate the factors that may have contributed to the changes in revenue over the three-year period, such as changes in franchise sales strategies, market conditions, or the competitive landscape.