What is the reported net income for Ella Cafe?
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 | -$ 5,025.00 | | Net Income | -$ 15.00 | $ 89,945.00 | $ 0.00 | -$ 40.00 | -$ 70,090.00 | $ 0.00 | -$ 5,025.00 |
ITEM 22 CONTRACTS
Copies of all proposed agreements regarding this franchise offering are attached as the following Exhibits:
- B. Franchise Agreement and Attachments
- C. Multi-Unit Development Agreement and Attachments
- E. Sample Form of General Release
EXHIBIT B
FRANCHISE AGREEMENT
ELLA COFFEE HOUSE FRANCHISE AGREEMENT
ELLA COFFEE HOUSE
SUMMARY PAGE
| EFFECTIVE DATE: | |||
|---|---|---|---|
| FRANCHISEE: | |||
| INFORMATION FOR NOTICES: | |||
| Address: | |||
| Telephone Number: | |||
| Email Address: | |||
| PRINCIPAL EXECUTIVE: | |||
| Address: | |||
| Telephone Number: | |||
| Email Address: | |||
| SITE SELECTION AREA | Ella Coffee House of | ||
| NAME: | |||
| INITIAL FRANCHISE FEE: | $49,500. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 49–50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, there are two different net income figures reported. One table shows the monthly net income from January 2024 to July 2024. The net income varies month to month, with -$15.00 in January, $89,945.00 in February, $0.00 in March, -$40.00 in April, -$70,090.00 in May, $0.00 in June, and -$5,025.00 in July.
Another table provides a total net income figure of $19,800.00. It is important to note that the financial statements included in the FDD have not been audited by an independent certified public accountant.
A prospective franchisee should inquire about which period this net income covers and request clarification on the discrepancies between the monthly figures and the total net income. Understanding the basis for these figures is crucial for assessing the financial health and potential profitability of an Ella Cafe franchise.