What was the office expense 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 |
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 provided financial statements do not explicitly list "office expense" as a separate line item in the profit and loss statements for the years 2021, 2022, and 2023. The statement of cashflows and balance sheets similarly do not contain this level of detail.
While the financial statements include categories such as "Salaries & Wages Expense", "Legal & Professional Fees", and "Travel", there is no specific mention of office expenses. It is possible that office expenses are included within another expense category or were not significant enough to warrant a separate line item.
A prospective franchisee should inquire with Crab N Spice about how office expenses are categorized and tracked in their accounting system. Understanding this breakdown will help the franchisee better estimate their own potential operating costs. It would be prudent to ask for a more detailed breakdown of operating expenses to gain clarity on where office-related costs are accounted for.