What was the net income for Mr. Sandless at the end of the year 2022?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| YEARS ENDED DECEMBER 31 | ||
|---|---|---|
| 2022 | 2021 | |
| Revenues | ||
| Royalties | $ 685,356 | $ 596,025 |
| Franchise fees | 237,772 | 203,270 |
| Brand development fees | 121,257 | 120,449 |
| Materials | 208,782 | 110,000 |
| Other income | 167,345 | 95,007 |
| 1,420,512 | 1,124,751 | |
| Operating expenses | 1,511,123 | 1,060,753 |
| Net Income (Loss) | (90,611) | 63,998 |
| Members' (Deficit) - Beginning | (76,192) | (88,149) |
| Members' (Distributions) | (36,253) | (52,041) |
| Members' (Deficit) - Ending | $ (203,056) | $ (76,1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the net income for the year ending December 31, 2022, was a loss of $90,611. This figure is part of the cash flow statement, which also details other financial activities during that period. In 2021, Mr. Sandless had a net income of $63,998.
This net loss in 2022 could be a crucial point for potential franchisees to consider. While not uncommon for businesses to experience fluctuations in income, understanding the reasons behind this loss is essential. Factors contributing to this could include increased expenses, decreased revenues, or investments in the company's infrastructure or marketing efforts.
A prospective franchisee should investigate the reasons for the net loss by reviewing the complete financial statements and notes. Understanding the context behind this figure will help them assess the financial stability and future prospects of Mr. Sandless. It would be prudent to discuss this with current franchisees and directly with Mr. Sandless's management team to gain a comprehensive understanding.