What was the net income before income taxes for Learningrx in the later year presented in this table?
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 2024 was $169,548. This figure represents Learningrx's earnings before any income tax expenses were deducted. In comparison, the net income before income taxes for the year 2023 was significantly lower, at only $18,662.
For a prospective Learningrx franchisee, this information provides insight into the financial performance of the company over the two most recent years. A higher net income before income taxes generally indicates better profitability and operational efficiency. The substantial difference between the 2024 and 2023 figures could prompt a franchisee to investigate the reasons behind the increase, such as changes in revenue, expense management, or other factors.
It's important to note that this is income before taxes, and the actual net income after taxes will be lower. Additionally, these figures reflect the performance of the Learningrx franchisor entity itself, and not necessarily the performance of individual franchise locations. A potential franchisee should review the complete financial statements and consult with a financial advisor to fully understand the financial health of Learningrx and the potential profitability of a franchise location.
Understanding the franchisor's financial performance is crucial for making an informed investment decision. While past performance is not indicative of future results, it provides valuable context for assessing the stability and potential growth of the Learningrx franchise system. Prospective franchisees should also consider other factors, such as the franchise's market position, competitive landscape, and the level of support provided by the franchisor.