What were the supplies and materials expenses for Crab N Spice in 2022?
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 supplies and materials expense for the company in 2022 was $10,960. This figure is part of the operating expenses listed in the company's Profit & Loss Statement for the years ending December 31, 2023, 2022, and 2021.
For a prospective franchisee, understanding the supplies and materials expense is crucial as it reflects the cost of goods and materials necessary to operate the Crab N Spice business. This includes items such as packaging, cleaning supplies, and other consumables required for day-to-day operations. Monitoring this expense helps in managing the overall profitability of the franchise.
It's important to note that supplies and materials expenses can fluctuate based on various factors, including changes in supplier costs, demand, and operational efficiency. Therefore, franchisees should regularly review and analyze these expenses to identify potential cost-saving opportunities and ensure they align with the projected budget. Comparing these expenses across different years can also provide insights into trends and potential areas for improvement.