What were the salaries and wages expenses 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 salaries and wages expense for the company in 2023 was $17,880. This figure reflects the total compensation paid to employees during that year.
For a prospective franchisee, understanding the franchisor's expenses, including salaries and wages, can provide insights into the financial health and operational efficiency of the company. While this figure represents the franchisor's expenses, it's important to recognize that a franchisee's salary and wage expenses will likely differ based on their location, staff size, and local wage rates.
It's also worth noting that the FDD includes financial statements audited by an independent accountant, which adds credibility to the reported figures. Reviewing these figures in the context of Crab N Spice's overall financial performance can help potential franchisees assess the financial stability of the franchise system. Franchisees should compare these figures with industry benchmarks and consider their own projected staffing needs and labor costs when evaluating the potential profitability of a Crab N Spice franchise.