table_specific

What was the total 'Direct Income' reported by Mr. Sandless during January-February 25?

Mr_Sandless Franchise · 2025 FDD

Answer 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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.