What was the net income from operations for Crab N Spice in 2021?
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 net income from operations for the company in 2021 was $12,642. This figure represents the company's earnings specifically from its core business activities, without factoring in other income, expenses, or taxes.
For a prospective franchisee, understanding the franchisor's net income from operations can provide insight into the financial health and stability of the company. A positive net income from operations suggests that the company is generating enough revenue to cover its operating expenses.
However, it is important to note that this figure does not represent the entire financial picture of Crab N Spice. It excludes other income and expenses, as well as any provision for income taxes. Therefore, prospective franchisees should review the company's complete financial statements to gain a comprehensive understanding of its financial performance. Additionally, the document shows a net loss from operations of ($27,731) in 2023, and a net loss from operations in 2022.