What was the total operating revenue for Face Foundrie in 2022?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
30,499 | 2,013,938 | | Total liabilities | 5,427,477 | 4,151,843 | 2,959,606 | | Member's deficit | (382,792) | (833,308) | (559,155) | | Total liabilities and member's deficit | $ 5,044,685 | $ 3,318,535 | $ 2,400,451 | | | | | |
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2024, 2023 and 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Operating revenues | ||||||
| Royalty fees | $ | 1,736,820 | $ | 1,067,442 | $ | 712,958 |
| Franchise fees | 533,096 | 651,100 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the total operating revenue for 2022 was $1,240,488. This revenue is comprised of several different fees that Face Foundrie collects, including royalty fees, franchise fees, advertising fees, technology fees, training and support fees, and other operating revenue. Royalty fees made up the largest portion of the operating revenue, totaling $712,958 in 2022. Franchise fees accounted for $347,280, while advertising fees contributed $125,286. The remaining revenue came from technology fees ($32,000), training & support fees ($14,300), and other operating revenue ($8,664).
For a prospective franchisee, understanding the composition of Face Foundrie's revenue streams is crucial. It highlights how the company generates income and what fees franchisees will be contributing to. The substantial portion of revenue derived from royalty fees indicates the ongoing financial relationship between Face Foundrie and its franchisees, based on a percentage of their sales. The additional fees, such as advertising and technology fees, suggest the support and resources Face Foundrie provides to its franchisees to help them operate effectively.
It's also important to note the trend in revenue growth from 2022 to 2024. Total operating revenues increased from $1,240,488 in 2022 to $3,100,529 in 2024, indicating significant growth for Face Foundrie. This growth trend could be an attractive factor for potential franchisees, suggesting a strong and expanding business model. However, prospective franchisees should conduct their own due diligence to understand the factors driving this growth and whether it is sustainable.
Overall, the financial statement provides valuable insights into Face Foundrie's revenue generation and financial performance. By examining the different revenue streams and their respective contributions, potential franchisees can gain a better understanding of the financial dynamics of the franchise system and make informed decisions about their investment.