What was the uncategorized expense for Ella Cafe in July 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 uncategorized expense for July 2024 was $5,000. This figure is part of a larger profit and loss statement covering January to July 2024. The total expenses for July 2024 amounted to $5,025, which includes the uncategorized expense and other administrative expenses such as bank charges and fees.
For a prospective Ella Cafe franchisee, understanding these uncategorized expenses is crucial. While the FDD provides a snapshot of these expenses, it doesn't detail what specific costs are included under this category. This lack of transparency can make it difficult to forecast potential costs accurately. Franchisees should inquire about the nature of these uncategorized expenses to better understand where their money is being spent.
It's also important to note that the financial statements provided in the FDD are unaudited. This means that an independent certified public accountant has not reviewed the figures or expressed an opinion on their accuracy. While unaudited statements can still provide valuable information, franchisees should exercise caution and consider seeking professional financial advice before making any investment decisions. Understanding the types of expenses that might fall into this category can help a franchisee better prepare their own budget and manage their finances effectively.
In the franchise industry, it is common for franchisors to have various categories of expenses, but the level of detail provided can vary. Some franchisors may provide a more detailed breakdown of expenses, while others may group them into broader categories. Prospective franchisees should always ask for clarification on any expense categories that are unclear to ensure they have a complete understanding of the financial picture.