What was the reported Net Income for Expense Reduction Analysts as of December 31, 2023?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- | 4,320,068 | | Noncontrolling Interest in Subsidiaries | | 32,360 | 2 | 26,049 | | Total Stockholders' Equity | | 5,497,843 | _ | 4,346,117 | | Total Liabilities and Stockholders' Equity | $ | 11,921,252 | $ | 10,518,455 |
| 2023 | (restated) 2022 | |
|---|---|---|
| FRANCHISE INCOME | VI SELECTION OF | |
| Franchise Fees | $ 602,489 | $ 787,181 |
| Royalty Fees | 3,888,131 | 3,718,035 |
| MAC Income | 671,456 | 630,396 |
| Management Software Fees | 142,233 | 144,550 |
| Other Income | 53,250 | 24,000 |
| Total Franchise Income | 5,357,559 | 5,304,162 |
| GENERAL AND ADMINISTRATIVE EXPENSE | 4,783,886 | 5,367,347 |
| OTHER INCOME (EXPENSE) | America | |
| Management Fee from Related Party | 672,103 | 477,564 |
| Other Expense | (1,698) | 2 |
| Other Income | 1,565 | 2,321 |
| Total Other Income | 671,970 | 479,885 |
| NET INCOME BEFORE INCOME TAXES | 1,245,643 | 416,700 |
| PROVISION FOR INCOME TAXES | 93,917 | 259,914 |
| NET INCOME | 1,151,726 | 156,7 |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the net income attributable to Expense Reduction Analysts, Inc. for the year 2023 was $1,142,947. This figure represents the company's profitability after accounting for all revenues, expenses, and taxes, as well as adjustments for noncontrolling interests in subsidiaries. This indicates the portion of the net income that is specifically attributable to the parent company, Expense Reduction Analysts, Inc., rather than to any minority shareholders in its subsidiaries.
For a prospective franchisee, this net income figure provides insight into the financial health and profitability of Expense Reduction Analysts. A consistently positive and growing net income can be seen as a positive indicator, suggesting that the company is well-managed and that its business model is successful. However, it is essential to consider this figure in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's performance.
It is also important to note that the net income attributable to Expense Reduction Analysts, Inc. can differ from the overall net income due to the presence of noncontrolling interests in subsidiaries. In 2023, the adjustment for noncontrolling interests was ($8,779), which reduced the net income attributable to Expense Reduction Analysts, Inc. This adjustment reflects the portion of the subsidiaries' net income that is not owned by Expense Reduction Analysts, Inc. and is therefore not included in its attributable net income. Franchisees should investigate the reasons for any significant changes in net income or adjustments to understand the underlying factors affecting the company's financial performance.
Overall, the reported net income attributable to Expense Reduction Analysts, Inc. for 2023 offers valuable information for potential franchisees. While a positive net income is generally a good sign, prospective franchisees should conduct thorough due diligence, analyze the company's financial statements in detail, and seek professional advice to make informed investment decisions.