What was the net income for Deka Lash at the end of the year 2021?
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)
According to Deka Lash's 2024 Franchise Disclosure Document, the net income for the company at the end of 2021 was $717,454. The document also shows the balance at December 31, 2020, was a deficit of $(3,671,476), and the balance at December 31, 2021, was a deficit of $(2,954,022).
It is important to note that while Deka Lash had a net income of $717,454 in 2021, the company still had a negative balance overall. This means that while the company was profitable in 2021, it had not yet made up for previous losses.
A prospective franchisee should consider the overall financial health of Deka Lash, including its history of net income and losses, before investing in a franchise. Reviewing the balance sheets and income statements within the FDD can provide a clearer picture of the company's financial stability and growth potential.