What was the net income for Crepe De Licious in the later year presented in the table?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current income taxes | 26,895 | 56,181 |
|---|---|---|
| Deferred income taxes | (5,300) | (14,600) |
| Total provision for income taxes | 21,595 | 41,581 |
| Net income | 46,812 | 90,067 |
| Retained earnings - beginning of year | 218,015 | 127,948 |
| Retained earnings - end of year | $ 264,827 | $ 218,015 |
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the company's net income for the year ended December 31, 2023, was $46,812. This figure represents the profit Crepe De Licious retained after deducting all expenses, including income taxes, from its total revenues for that year.
Understanding net income is crucial for prospective franchisees as it provides insight into the financial health and profitability of Crepe De Licious. A higher net income generally indicates a more successful and stable franchise system, which can be an attractive factor for potential investors.
It's also important to note that this net income reflects the performance of Crepe De Licious as a whole and not necessarily the potential profitability of an individual franchise location. Factors such as location, operating costs, and local market conditions can significantly impact the financial performance of a specific franchise unit. Therefore, while the franchisor's net income provides a general overview, prospective franchisees should conduct their own due diligence and financial analysis to assess the potential profitability of their own Crepe De Licious franchise.