What was the total 'Direct Income' reported by Mr. Sandless during January-February 25?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
001 · Retained Earnings | -392.10 | | 3002 · Retained Earnings - Prior Year | 24,694.00 | | 3003 · Withdrawals | -122,680.33 | | Net Income | 39,679.84 | | Total Equity | -58,698.59 | | TOTAL LIABILITIES & EQUITY | 271,991.04 |
7:52 PM Mr. Sandless Franchise LLC 04/15/25 Profit & Loss
Accrual Basis January through February 2025
| Jan - Feb 25 | |
|---|---|
| Ordinary Income/Expense | |
| Income | |
| 1 Direct Income | |
| E. Other | |
| 4003 · Administration Fees | 7,697.12 |
| 4106 · Online Product Sales | 50.00 |
| Total E. Other | 7,747.12 |
| 4001 · A. Franchise Fees | 45,000.00 |
| 4006 · C. Franchise Royalty Fees | 125,579.55 |
| Total 1 Direct Income | 178,326.67 |
| 3 Pass Through Income | |
| Gmail email | 1,690.00 |
| 4004 · Advertising Fund | 14,984.03 |
| 4008 · Franchise Kits | 50,000.00 |
| 4011 · NTFN | 2,194.00 |
| Total 3 Pass Through Income | 68,868.03 |
| 4024 · Credit | 50.00 |
| Total Income | 247,244.70 |
| Cost of Goods Sold | |
| 5002 · Carpentry Supplies | 389.51 |
| 5003 · Franchise Kits | 8,597.80 |
| Total COGS | 8,987.31 |
| Gross Profit | 238,257.39 |
| Expense | |
| Merchant deposit fees | 1,845.07 |
| Payroll | 110,594.77 |
| 6039 · Payroll Expenses - Gross | 13,256.47 |
| Payroll - Other | |
| Total Payroll | 123,851.24 |
| Payroll taxes | |
| 6040 · FUTA | 230.25 |
| 6041 · PaUC | 2,374.87 |
| 6042 · S.S. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the total direct income for January through February 2025 was $178,326.67. This income is derived from several sources, including franchise fees and franchise royalty fees. Specifically, franchise fees contributed $45,000.00, while franchise royalty fees accounted for $125,579.55 of the total direct income.
For a prospective Mr. Sandless franchisee, understanding the breakdown of income sources is crucial. Franchise fees typically represent initial payments made by new franchisees, while royalty fees are ongoing payments based on a percentage of the franchisee's revenue. The higher proportion of royalty fees in the direct income suggests that Mr. Sandless relies more on the continued success of its franchisees than on initial franchise sales.
It's important to note that this figure represents Mr. Sandless's income, not the income of individual franchisees. A potential franchisee should carefully review the entire financial section of the FDD and speak with existing franchisees to understand their potential earnings and expenses. Additionally, they should consider factors such as location, market conditions, and their own management capabilities, which can significantly impact their financial performance.