What was the net income or loss reported by 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 2022 was $76,903. This figure represents the culmination of total revenues of $298,197, offset by total operating expenses of $221,294, resulting in an operating income of $76,903, which also matches the reported net income.
Specifically, the revenues comprised $284,143 from initial franchise fees, $11,498 from royalties, and $2,555 from the brand development fund. The operating expenses included various costs such as $6,139 for advertising and marketing, $19,725 for insurance, $5,445 for software and application, $67,857 for commissions, $5,000 for professional and legal fees, $6,799 for general and administrative expenses, and $110,329 for related party management fees.
For a prospective franchisee, this information provides insight into the financial performance of Deer Solution. A positive net income suggests that the franchise system is generating more revenue than it is spending on operating expenses. However, it is important to consider the related party management fees, which constitute a significant portion of the operating expenses. Franchisees should investigate the nature of these fees and their potential impact on the overall profitability of the franchise.