What was the total income from franchise fees for Hear Again America?
Hear_Again_America Franchise · 2025 FDDAnswer from 2025 FDD Document
ing notes are an integral part of these financial statements.
HEAR AGAIN FRANCHISING, LLC. STATEMENT OF INCOME AND CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2024
| Royalty | $ 19,796 |
|---|---|
| Franchise Fees | 22,100 |
| Other revenue | 22,688 |
| Total income | 64,584 |
| Expenses | |
| Operating expense | 434,813 |
| Total Operating Expenses | 434,813 |
| NET LOSS | (370,229) |
| Owners | (220,300) |
| Equity – | |
| Beginning of Year | |
| Contributions | 29,062 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Hear Again America's 2025 Franchise Disclosure Document, the total income from franchise fees in 2023 was $22,100. This indicates the revenue Hear Again America generated specifically from the fees it charges to new franchisees for the right to operate under its brand.
For a prospective franchisee, this figure provides insight into the franchisor's revenue streams. While $22,100 represents the income from franchise fees, it's important to note that this is not the only source of revenue for Hear Again America. The company also generates income from royalties and other revenue sources, which totaled $19,796 and $22,688 respectively in 2023. Understanding the different revenue streams can help a franchisee assess the overall financial health and stability of the franchisor.
It is also important to note that Hear Again America had a net loss of $370,229 in 2023, despite generating $64,584 in total income. This suggests that the company's expenses significantly exceeded its revenue during that period. A prospective franchisee should investigate the reasons for this loss and assess whether the company has a plan to improve its financial performance. Reviewing multiple years of financial statements and understanding the franchisor's strategies for profitability are crucial steps in evaluating the franchise opportunity.