What were the total operating expenses for Floors To Go in 2022?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
09 | | 51,761 | | revenue | | | | | Accrued | 260,669 | | 227,000 | | expenses | | | | | Total | 777,094 | | 856,940 | | liabilities | | | | | (all | | | | | current) | | | | | Member's | 549,866 | | 1,259,440 | | equity | | | | | Total | $ 1,326,960 | | $ 2,116,380 | | liabilities | | | | | and | | | | | member's | | | | | equity | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Income and Member's Equity
| Year Ended December 31 | |||
|---|---|---|---|
| 2023 | 2022 | ||
| Revenue | |||
| Operating | $ 3,313,578 | $ 3,301,062 | |
| Sale | 13,451 | 5,000 | |
| of | |||
| franchise | |||
| licenses | |||
| Total | 3,327,029 | 3,306,062 | |
| revenue | |||
| Operating | |||
| expenses | |||
| Management | 800,000 | 800,000 | |
| fees ‐ related | |||
| party | |||
| Franchise | 474,154 | 418,488 | |
| related | |||
| costs | |||
| Commissions | 207,300 | 189,800 | |
| Travel, | 49,481 | 48,161 | |
| meals | |||
| and | |||
| entertainment | |||
| Professional | 44,403 | 55,813 | |
| services |
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the company's total operating expenses for the year 2022 were $1,521,665. This figure encompasses several specific expense categories, providing insight into where the company's money was allocated. These categories include management fees to a related party, franchise related costs, commissions, travel, meals and entertainment, professional services, credit losses, and general office expenses.
Breaking down the operating expenses, a significant portion was allocated to management fees paid to a related party, totaling $800,000. Franchise related costs amounted to $418,488, while commissions reached $189,800. Other expenses included travel, meals, and entertainment at $48,161, professional services at $55,813, credit losses at $3,504 and general office expenses at $5,899.
Understanding these operating expenses is crucial for potential franchisees as it provides a clear picture of the financial health and operational costs of Floors To Go. Reviewing these figures in comparison to revenues can help assess the company's profitability and efficiency in managing its resources. Additionally, prospective franchisees can use this information to benchmark against their own projected expenses and evaluate the potential return on investment in a Floors To Go franchise.