What was the net income for Learningrx before income taxes in 2023?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
n ended in accordance with accounting principles generally | | | | | | accepted in the United States of America. | | | | |
LearningRx Franchise Corporation Statements of Income For the Years Ended September 30, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Income | ||
| Royalty fees | $ 1,192,359 | $ 1,192,063 |
| Initial franchise fees | 114,551 | 162,286 |
| Area development fees | 9,769 | 6,200 |
| Technology and training fees | 113,401 | 112,854 |
| Transfer fees | 24,500 | - |
| Renewal fees | 7,000 | 7,000 |
| Materials fees | 15,888 | 16,479 |
| Marketing fees | 73,535 | 17,418 |
| Interest and other income | 20,726 | 5,295 |
| Total Income | 1,571,729 | 1,519,595 |
| Expenses | ||
| Bad debt | 29,764 | - |
| Depreciation | 898 | 898 |
| Franchise system expenses | 615,225 | 564,949 |
| Marketing and development | 50,212 | 34,373 |
| Outside consultants | 104,033 | 105,341 |
| Overhead | 79,864 | 133,279 |
| Professional fees | 67,938 | 90,734 |
| Rent | 60,000 | 80,000 |
| Research and development | 24,000 |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the net income before income taxes for the year 2023 was $18,662. This figure represents the company's earnings before accounting for income tax expenses. It is an important metric for prospective franchisees to consider as it reflects the profitability of Learningrx's operations before taxes.
Specifically, Learningrx's total income for 2023 was $1,519,595, while total expenses amounted to $1,500,933. The difference between these two figures results in the net income before income taxes of $18,662. This indicates that Learningrx generated more revenue than it spent during the year, resulting in a profit before taxes.
Understanding Learningrx's financial performance, including its net income before taxes, can help potential franchisees assess the financial health and stability of the franchise system. It's important to note that past performance is not necessarily indicative of future results, but it can provide valuable insights into the franchisor's ability to generate revenue and manage expenses. Prospective franchisees should carefully review the financial statements and consult with a financial advisor to make informed decisions about investing in a Learningrx franchise.