What was the royalty 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 royalty income as of February 31, 2023, was $2,062,890. This figure represents the income Deka Lash received from royalties paid by its franchisees during that period.
For a prospective franchisee, this number provides insight into the revenue streams of Deka Lash and the importance of royalty payments to the franchisor's financial health. It also indicates the scale of the franchise system and the collective sales performance of its franchisees, from which royalties are derived.
It's important to note that February 31 is not a valid date. The FDD likely contains a typographical error, and the date should be interpreted as December 31, 2023, or another reporting period end date. A potential franchisee should confirm the correct date and reporting period with Deka Lash to ensure accurate understanding.