What was the net income before income tax for Fat Shack 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 company in 2022 was $457,346. This figure represents the company's earnings before any income tax expenses were deducted.
For a prospective franchisee, this number provides insight into Fat Shack's overall profitability and financial performance. It's important to consider this figure in the context of other financial data provided in the FDD, such as revenue, operating expenses, and other income, to get a comprehensive understanding of the company's financial health. A consistently positive net income before income tax suggests that the company is managing its operations effectively and generating profits.
However, franchisees should also be aware that past performance is not necessarily indicative of future results. Various factors, such as changes in market conditions, competition, and the company's strategic decisions, can impact future profitability. Therefore, it is crucial to conduct thorough due diligence and consider all available information before making a decision to invest in a Fat Shack franchise.
It is also important to note that this is the net income before income tax for Fat Shack Inc. and Subsidiary, not the net income of an individual franchise location. Individual franchise locations will have their own revenue and expenses that will determine their profitability.