What was the net income or loss for Deer Solution in 2022?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Members' Equity | | | Members' equity | 116,303 | | Total Members' Equity | 116,303 | | Total Liabilities and Members' Equity | $ 452,160 |
Deer Solution Franchising, LLC Statement Of Operations Year Ended December 31, 2022
| Revenues | 2022 | |
|---|---|---|
| Initial franchise fees | $ | 284,143 |
| Royalties | Υ. | 11,498 |
| Brand development fund | 2,555 | |
| Total Revenues | 298,197 | |
| Operating Expenses | ||
| Advertising and marketing | 6,139 | |
| Insurance | 19,725 | |
| Software and application | 5,445 | |
| Commissions | 67,857 | |
| Professional and |
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the company's net income for the year ending December 31, 2022, was $76,903. This figure is derived from total revenues of $298,197, which includes $284,143 in initial franchise fees, $11,498 in royalties, and $2,555 from the brand development fund.
Deer Solution also reported total operating expenses of $221,294 for 2022. These expenses include advertising and marketing ($6,139), insurance ($19,725), software and application costs ($5,445), commissions ($67,857), professional and legal fees ($5,000), general and administrative costs ($6,799), and related party management fees ($110,329). The operating income, calculated before considering other income or expenses, was $76,903, which matches the reported net income.
It's important for a prospective franchisee to review these figures in the context of the full financial statements and notes, as well as to compare them against industry benchmarks and the performance of other franchises. Understanding the breakdown of revenues and expenses can provide valuable insights into the financial health and operational efficiency of Deer Solution. Additionally, the significant related party management fees should be carefully scrutinized to understand the nature of these transactions and their potential impact on profitability.