What were the total operating expenses for Deka Lash as of 12/31/2021?
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 total operating expenses for the company as of December 31, 2021, were $7,377,160. This figure encompasses various costs associated with running the business, providing a comprehensive view of the company's financial operations during that period. These expenses are a key indicator of the financial health and operational efficiency of Deka Lash.
Specifically, the operating expenses include several categories such as selling and administrative expenses, product costs, development costs, salaries, wages, and benefits, other operating expenses, amortization expense, and depreciation expense. For instance, selling and administrative expenses amounted to $983,611, while product costs were significantly higher at $1,989,404. Salaries, wages, and benefits represented a substantial portion of the operating expenses, totaling $2,743,730. Development costs were $1,221,014, and other operating expenses were $419,793. Additionally, depreciation expense was $19,608.
Prospective franchisees should consider these operating expenses when evaluating the financial performance of Deka Lash. Understanding the breakdown of these expenses can help franchisees assess the potential profitability and sustainability of their own franchise locations. It's important to note that these figures reflect the company's overall expenses and may not directly translate to the operating costs of an individual franchise, which can vary based on location, sales volume, and other factors. Franchisees should conduct their own due diligence and consult with financial advisors to develop realistic financial projections for their specific circumstances.