What was the gross profit for Ella Cafe in May 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 | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 49–50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the gross profit for May 2024 was reported as negative $70,000. This means that Ella Cafe's cost of goods sold and subcontractor expenses exceeded its total income for that month.
Specifically, the total income for Ella Cafe in May 2024 was $0, while the total cost of goods sold was $70,000. This resulted in the reported gross profit of negative $70,000. It is important to note that these figures are unaudited and represent the financial performance of a specific franchise account during that period.
A prospective franchisee should carefully consider these financial results and investigate the reasons behind the negative gross profit in May 2024. Understanding the factors that contributed to this outcome, such as high subcontractor expenses or low sales volume, is crucial for assessing the potential profitability and risks associated with investing in an Ella Cafe franchise. It would be prudent to discuss these figures with the franchisor to gain further insights and clarification.