What was the net operating income 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 net operating income for January 2024 was a loss of $15.00. This information is derived from the Franchise Account Profit and Loss statement covering January to July 2024. The statement details income, cost of goods sold, gross profit, expenses, and ultimately, the net operating income for each month.
For a prospective Ella Cafe franchisee, this financial statement offers a glimpse into the potential monthly performance of a franchise location. The fact that January 2024 shows a slight loss in net operating income suggests that the business may experience slower periods or higher initial expenses during certain months. It's important to note that this is just one month's performance and may not be representative of the entire year or the typical performance of an Ella Cafe franchise.
It is also important to note that these financial statements have not been audited by an independent certified public accountant. Prospective franchisees should consider this when reviewing the figures and potentially seek professional financial advice to fully understand the implications. Further investigation into the factors contributing to the January loss, such as marketing spend, seasonal trends, or initial setup costs, would be beneficial for anyone considering investing in an Ella Cafe franchise.