What was the brand development income for Deka Lash as of 2/31/2023?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
28,281 | | | | Notes payable - related party | _ | 246,840 | _ | 314,888 | - | 546,725 | | TOTAL CURRENT LIABILITIES | | 2,205,214 | | 2,162,601 | | 2,157,775 | | OTHER LIABILITIES | | | | | | | | Deferred franchise fees, net of current | | 5,240,215 | | 6,295,983 | | 6,270,634 | | Deferred revenue | - | 281,520 | _ | 343,104 | - | 277,012 | | TOTAL LIABILITIES | _ | 7,726,949 | _ | 8,801,688 | _ | 8,705,421 | | MEMBER'S CAPITAL | | | | | | | | Member's capital | - | (2,508,218) | _ | (2,728,473) | - | (2,954,022) | | TOTAL MEMBER'S CAPITAL | _ | (2,508,218) | _ | (2,728,473) | _ | (2,954,022 | | TOTAL LIABILITIES AND MEMBER'S CAPITAL | | 5,218,731 | 5 | 6,073,215 | $ | 5,751,399 |
| 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 |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the brand development income as of 2/31/2023 was $508,196. This figure represents the income Deka Lash collected for brand development during that period. Brand development fees are typically used for marketing, advertising, and promotional activities to enhance the brand's recognition and attract customers.
For a prospective franchisee, understanding the brand development income is important because it provides insight into the financial resources allocated to marketing and advertising efforts. These efforts can directly impact the franchisee's ability to attract customers and grow their business. Franchisees often contribute to the brand development fund, so knowing how much is collected and how it's used can help them assess the value they receive from these contributions.
It's also useful to compare the brand development income with other revenue streams, such as initial franchise fees, product sales, and royalty income, to get a comprehensive view of Deka Lash's financial performance. Additionally, examining the operating expenses, including selling and administrative expenses, product costs, and development costs, can provide a clearer picture of the company's overall financial health and stability. This information can help potential franchisees evaluate the financial viability of investing in a Deka Lash franchise.