What were the capital expenditures for My Salon Suite in 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | | | | | | 31, | | | | | | | | 2023 | | | | | | |
Consolidated Statements of Cash Flows
| For the years ended December 31, | 2023 | 2022 |
|---|---|---|
| Operating | ||
| activities | ||
| Net income | $ 12,569,087 | $ 17,655,295 |
| Adjustments | ||
| to | ||
| reconcile | ||
| net | ||
| income | ||
| to | ||
| net | ||
| cash | ||
| provided by operating activities: | ||
| Bad | 429,277 | 58,670 |
| debt | ||
| expense | ||
| Depreciation | 4,502,473 | 4,043,757 |
| & | ||
| amortization | ||
| Share-based | 1,144,951 | 955,911 |
| compensation | ||
| expense | ||
| Gain | - | (253,092) |
| on | ||
| sale | ||
| of | ||
| assets | ||
| Capital | 323,146 | - |
| Asset | ||
| Impairment | ||
| Deferred | 182,406 | (526,188) |
| income | ||
| taxes | ||
| Amortization | 4,322,294 | 3,957,006 |
| of | ||
| right-of-use | ||
| asset | ||
| Changes in operating assets and | ||
| liabilities, | ||
| net | ||
| of | ||
| businesses | ||
| acquired: | ||
| Accounts | (715,354) | (1,222,781) |
| and | ||
| notes |
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the company's capital expenditures for the year ending December 31, 2023, totaled $2,715,270. This figure reflects the investments My Salon Suite made in its business operations during that year. Capital expenditures are funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment.
For a prospective franchisee, understanding the franchisor's capital expenditure trends can offer insights into the company's investment strategies and growth patterns. It demonstrates My Salon Suite's commitment to maintaining and expanding its infrastructure. This can be a positive sign, indicating that the franchisor is reinvesting in the business, which could benefit franchisees through improved systems, technology, or facilities.
However, it is important to note that these expenditures reflect the investments made by the company itself, not the initial investment required by a new franchisee to open a My Salon Suite location. Franchisees should refer to other sections of the FDD, such as Item 7, to understand their own expected initial investment, which includes costs like build-out, equipment, and initial franchise fees. Reviewing the company's financial statements and capital expenditure history can still provide valuable context for assessing the overall health and growth trajectory of the My Salon Suite franchise system.