What were the bank charges and fees for Ella Cafe in January 2024?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
362.00 |
Franchise Account Profit and Loss
January 2024 - July 2024
| Jan 2024 | Feb 2024 | Mar 2024 | Apr 2024 | May 2024 | Jun 2024 | Jul 2024 | |
|---|---|---|---|---|---|---|---|
| Income | |||||||
| Services | 100,000.00 | ||||||
| Total Income | $ 0.00 | $100,000.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 |
| Cost of Goods Sold | |||||||
| Cost of goods sold | |||||||
| Subcontractor expenses | 10,000.00 | 70,000.00 | |||||
| Total Cost of goods sold | $ 0.00 | $ 10,000.00 | $ 0.00 | $ 0.00 | $ 70,000.00 | $ 0.00 | $ 0.00 |
| Total Cost of Goods Sold | $ 0.00 | $ 10,000.00 | $ 0.00 | $ 0.00 | $ 70,000.00 | $ 0.00 | $ 0.00 |
| Gross Profit | $ 0.00 | $ 90,000.00 | $ 0.00 | $ 0.00 | -$ 70,000.00 | $ 0.00 | $ 0.00 |
| Expenses | |||||||
| 70000 Other Admin Expenses | |||||||
| 70010 Bank Charges and Fees | 15.00 | 40.00 | 40.00 | 90.00 | 25.00 | ||
| Total 70000 Other Admin Expenses | $ 15.00 | $ 40.00 | $ 0.00 | $ 40.00 | $ 90.00 | $ 0.00 | $ 25.00 |
| General business expenses | |||||||
| Bank fees & service charges | 15.00 | ||||||
| Total General business expenses | $ 0.00 | $ 15.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 |
| Uncategorized Expense | 5,000.00 | ||||||
| Total Expenses | $ 15.00 | $ 55.00 | $ 0.00 | $ 40.00 | $ 90.00 | $ 0.00 | $ 5,025.00 |
| Net Operating Income | -$ 15.00 | $ 89,945.00 | $ 0.00 | -$ 40.00 | -$ 70,090.00 | $ 0.00 | -$ 5, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 49–50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the bank charges and fees for January 2024 were $15. This figure is listed under the '70010 Bank Charges and Fees' line item within the Franchise Account Profit and Loss statement. This indicates the expenses Ella Cafe incurred for bank-related services during that month.
For a prospective franchisee, understanding these monthly expenses is crucial for budgeting and financial planning. Bank charges and fees are a normal part of operating a business, but it's important to monitor them to ensure they remain reasonable. Fluctuations in these fees could indicate changes in banking services or potentially highlight areas where costs could be reduced.
The FDD also provides figures for bank charges and fees for subsequent months, such as $40 in February 2024, $40 in April 2024, $90 in May 2024 and $25 in July 2024. Reviewing these figures over time can help a franchisee understand the typical range of these expenses and identify any unusual spikes that warrant investigation. Additionally, the FDD lists 'Bank fees & service charges' as $15.00 in February 2024 under General business expenses. It is important to understand the difference between these two line items to fully understand the bank charges and fees.
It would be prudent for a potential Ella Cafe franchisee to discuss these bank charges and fees with existing franchisees during their due diligence. This will provide a more comprehensive understanding of these costs in practice and how they might vary based on location, transaction volume, or other factors. Understanding these nuances can lead to more accurate financial projections and better management of operating expenses.