What was the cost of sales of advertising kits for Dq Treat in 2022?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | December 31 | |
|---|---|---|
| 2024 | 2023 | |
| Current assets | $ 27,271 | $ 27,032 |
| Cash and cash equivalents | ||
| Notes and accounts receivable—less allowance of $1,501 and $903 | 50,352 | 50,742 |
| in 2024 and 2023, respectively | ||
| Income tax receivable | 7,731 | 1,292 |
| Cash pooling receivable from affiliate | 44,559 | 55,807 |
| Inventories | 120 | 118 |
| Prepaid expenses | 2,047 | 2,604 |
| Total current assets | 132,080 | 137,595 |
| Noncurrent assets | ||
| Property and equipment, net | 10,903 | 12,309 |
| Goodwill | 92,023 | 92,214 |
| Intangibles, net | 82,398 | 80,049 |
| Operating lease assets | 5,090 | 5,799 |
| Other | 33,412 | 32,547 |
| Total noncurrent assets | 223,826 | 222,918 |
| Total assets | $ 355,906 | $ 360,513 |
| Liabilities and Stockholder's Equity | ||
| Current liabilities | ||
| Accounts payable | $ 27,026 | $ 24,348 |
| Committed advertising | 39,844 | 35,618 |
| Unredeemed gift card liabilities | 102,697 | 97,376 |
| Other liabilities | 36,889 | 38,613 |
| Current portion of operating lease liabilities | 1,004 | 962 |
| Total current liabilities | 207,460 | 196,917 |
| Noncurrent liabilities | ||
| Deferred franchise income | 3,024 | 2,816 |
| Deferred income taxes—net | 17,652 | 17,337 |
| Long-term operating lease liabilities | 7,305 | 8,365 |
| Other long-term liabilities | 40,155 | 41,702 |
| Total noncurrent liabilities | 68,136 | 70,220 |
| Total liabilities | 275,596 | 267,137 |
| Commitments and contingencies | ||
| Stockholder's equity | - | - |
| Class A common stock, $0.01 par value—authorized and outstanding, 1,000 shares | ||
| Additional paid-in capital | 152,197 | 152,197 |
| Retained deficit | (68,411) | (56,286) |
| Accumulated other comprehensive loss | (3,476) | (2,535) |
| Total stockholder's equity | 80,310 | 93,376 |
| Total liabilities |
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the cost of sales of advertising kits in 2022 was $12,647. This figure represents the direct expenses Dq Treat incurred to provide advertising kits to its franchisees during that year. These costs can include the production, sourcing, and distribution of the advertising materials.
For a prospective Dq Treat franchisee, understanding this cost is important as it provides insight into the franchisor's financial performance and how advertising and marketing are supported within the franchise system. The cost of sales of advertising kits is a component of the overall costs and expenses, which ultimately affects the operating income and net income of Dq Treat. A higher cost of sales could potentially impact the fees charged to franchisees for advertising materials or the allocation of funds for marketing programs.
It's also worth noting the trend in these costs over the three years presented in the FDD. The cost of sales of advertising kits decreased from $12,647 in 2022 to $8,725 in 2024. This could be due to various factors such as changes in advertising strategies, more efficient sourcing of materials, or adjustments in the types of kits offered to franchisees. Prospective franchisees may want to inquire about the reasons for these changes and how they might affect the support and materials they receive for local advertising efforts.
Overall, this data point offers a glimpse into the financial dynamics of Dq Treat's advertising and marketing support system, which is a crucial aspect of any franchise investment. Understanding these costs and their trends can help potential franchisees make informed decisions about their investment and marketing strategies.