What was the net income for Fat Shack before income tax in 2022?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME
| YEARS ENDED DECEMBER 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Revenue | ||||
| Royalties | $ | 1,202,270 | $1,249,916 | $1,309,709 |
| Franchise fees | 15,000 | 25,000 | ||
| Management Fees | 72,000 | |||
| Marketing fees | 880 | 60,853 | ||
| Other income | 203,939 | 240,081 | 170,509 | |
| Total Revenues | 1,479,089 | 1,504,997 | 1,566,071 | |
| Operating Expenses | 1,317,024 | 1,236,273 | 1,144,163 | |
| Operating Income | 162,065 | 268,724 | 421,908 | |
| Interest Income | 21,474 | 30,144 | 35,438 | |
| Net Income Before Income Tax | 183,539 | 298,868 | 457,346 | |
| Income Tax Benefit (Expense) | (52,744) | (80,153) | (73,621) |
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the net income before income tax for the year 2022 was $457,346. This figure represents the company's profitability before accounting for income taxes, offering a view of its operational efficiency and earnings potential.
For a prospective franchisee, understanding Fat Shack's net income before tax can be useful in assessing the overall financial health and stability of the company. It provides insight into how well the company manages its revenues and expenses, independent of tax-related factors. A higher net income before tax generally indicates a more profitable and well-managed business.
However, it's important to note that this is just one financial metric to consider. Franchisees should also review other financial statements and consult with a financial advisor to gain a comprehensive understanding of Fat Shack's financial performance and potential risks. Analyzing trends over multiple years, such as the provided data for 2023 and 2024, can offer a more complete picture of the company's financial trajectory.