What were the advertising expenses for Deka Lash for the year ended December 31, 2022?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| 1 | 2/31/2023 | 12/31/20 | 22 | 12/31/2021 | |
|---|---|---|---|---|---|
| REVENUE | 4 | . 200 000 | 2 . 200 | nau. | |
| Initial franchise fees | |||||
| Product sales | $ | 1,752,895 | $ 1,572, 3,707. | ||
| 511111111111111111111111111111111111111 | Part of the last | 200 | 2,955,206 | ||
| Royalty income | 2,062,890 | 2,024 | 1,551,172 | ||
| Brand development income | 508,196 | 301,725 | |||
| Other operating revenue | _ | 1,852,111 | 1,989 | 1,903,123 | |
| TOTAL REVENUES | _ | 9,339,025 | 9,643 | 649 | 8,010,120 |
| OPERATING EXPENSES | |||||
| Selling and administrative expense | 1.875,002 | 1,807. | 255 | 983,611 | |
| Product costs | 1,812,842 | 2,008 | 962 | 1,989,404 | |
| Development costs | 1,083,541 | 944 | 467 | 1,221,014 | |
| Salaries, wages, and benefits | 4,327,982 | 3,904 | 703 | 2,743,730 | |
| Other operating expenses | 846,406 | 810. | 881 | 419,793 | |
| Amortization expense | 18,000 | 13. | 556 | ||
| Depreciation expense | - | 17,948 | 13. | 439 | 19,608 |
| TOTAL OPERATING EXPENSES | _ | 9,981,721 | 9,503. | 263 | 7,377,160 |
| OPERATING (LOSS) / INCOME | 1 | (642,696) | 140. | 386 | 632,960 |
| OTHER INCOME (EXPENSE) | |||||
| Ot |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
Based on the 2024 Deka Lash Franchise Disclosure Document, specific advertising expenses for the year ending December 31, 2022, are not explicitly detailed. However, the FDD does include a table showing the balance at December 31, 2022, which is ($2,728.473). This figure represents the overall financial balance and not a specific breakdown of advertising expenses.
Item 23 discusses the Brand Development Fund, which covers various advertising and marketing activities. These activities include promotional events, graphic design, photography, video production, branding, public relations, marketing, promotional materials, and media production. The fund also supports the creation, maintenance, optimization, and advertising of the company website, pay-per-click advertising, social media management, and the creation and promotion of appointment setting software.
A prospective franchisee can request an annual unaudited financial statement of the Brand Development Fund to gain more insight into how these funds are allocated. This statement is available 120 days after the fiscal year end. The FDD also mentions that unspent Brand Development Fees are rolled over and applied to the fund in the following year, and the fund may be used to pay for an independent audit if Deka Lash chooses to have one.
To obtain the specific advertising expenses for the year ended December 31, 2022, a potential franchisee should directly ask Deka Lash for the detailed breakdown of the Brand Development Fund expenditures. This will provide a clearer understanding of how advertising and marketing funds are utilized and managed.