What is the gross profit reported for Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Extreme Art | |||
|---|---|---|---|
| Income | |||
| Total Income | |||
| Gross Profit | $ | 0.00 | |
| Expenses | |||
| Total Expenses | |||
| Net Operating Income | $ | 0.00 | |
| Other Income | |||
| 4800 Other Miscellaneous Income | |||
| 4850 Interest Income | 0.13 | ||
| Total 4800 Other Miscellaneous Income | $ | 0.13 | |
| Total Other Income | $ | 0.13 | |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the company's gross profit is $0.00 as of December 31, 2023. This indicates that the revenue generated by Extreme Art Studio was equal to its cost of goods sold during this period, resulting in no gross profit.
This is an important figure for prospective franchisees to consider, as gross profit is a key indicator of a company's profitability and efficiency in managing its production costs. A gross profit of zero could suggest that Extreme Art Studio is either not generating enough revenue or that its costs are too high.
It is important to note that this figure represents the franchisor's financial performance, and not necessarily the potential profitability of an individual franchise unit. A prospective franchisee should carefully review the entire financial section of the FDD and consult with a financial advisor to fully understand the financial implications of investing in an Extreme Art Studio franchise.