What was the total cost of goods sold 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 total cost of goods sold for May 2024 was $70,000. This figure includes subcontractor expenses. It is important to note that Ella Cafe experienced a negative gross profit of $70,000 in May 2024, meaning that the cost of goods sold exceeded the total income for that month.
Prospective franchisees should carefully consider the financial performance of Ella Cafe, particularly the cost of goods sold and its impact on profitability. Understanding the factors that contribute to these costs, such as supplier pricing, inventory management, and operational efficiency, is crucial for making informed decisions. It's also important to investigate why the gross profit was negative in May 2024.
Franchisees should also compare Ella Cafe's cost of goods sold to industry benchmarks and other similar franchise systems to assess its competitiveness and potential for profitability. Further due diligence, including a thorough review of the financial statements and discussions with existing franchisees, is recommended to gain a comprehensive understanding of the financial aspects of operating an Ella Cafe franchise.