What was the depreciation and amortization expense for My Salon Suite in 2022?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
es | | | | and | | | | member's | | | | equity | | |
Consolidated Statements of Income
| For the years ended December 31, | 2023 | 2022 |
|---|---|---|
| Revenues | ||
| Franchise | $ 3,508,446 | $ 3,373,128 |
| sales | ||
| Royalties | 49,940,078 | 45,832,770 |
| Rental | 13,118,572 | 11,907,621 |
| income | ||
| Other | 5,787,952 | 5,952,703 |
| revenue | ||
| Total revenues | 72,355,048 | 67,066,222 |
| Costs | ||
| and | ||
| expenses | ||
| Cost | 2,310,482 | 3,374,481 |
| of | ||
| goods | ||
| gold | ||
| Selling, | 44,067,902 | 37,229,030 |
| general, | ||
| and | ||
| administrative | ||
| Depreciation | 4,536,793 | 4,092,237 |
| and | ||
| amortization | ||
| Total | 50,915,177 | 44,695,748 |
| costs | ||
| and | ||
| expenses | ||
| Operating | 21,439,871 | 22,370,474 |
| Income | ||
| Other | ||
| income | ||
| Interest | 64,168 | 199 |
| income | ||
| Foreign | 8,040 | (43,356) |
| currency | ||
| exchange | ||
| Gain | - | 253,092 |
| on | ||
| sale | ||
| of assets | ||
| Total | 72,208 | 209,935 |
| other | ||
| income, | ||
| net | ||
| Income | 21,512,079 | 22,580,409 |
| before | ||
| taxes | ||
| Income | 8,942,992 |
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 total depreciation and amortization expense for the year ending December 31, 2022, was $4,092,237. This figure reflects the accounting recognition of the reduction in value of My Salon Suite's assets over that year. Depreciation specifically accounts for the wear and tear of tangible assets, while amortization covers the cost allocation of intangible assets. These expenses are important for understanding the overall financial performance and asset management of My Salon Suite. Franchisees should understand how these expenses are calculated as it can affect the overall profitability of the franchise.
Depreciation and amortization are non-cash expenses, meaning they don't represent actual cash outflows during the period. Instead, they reflect the allocation of the cost of assets over their useful lives. For My Salon Suite, these expenses impact the company's net income, which can affect various financial metrics and ratios. Understanding the nature and magnitude of these expenses can provide insights into the capital intensity and asset management practices of My Salon Suite.
Prospective franchisees should consider the depreciation and amortization expenses in the context of My Salon Suite's overall financial statements. Analyzing these expenses in conjunction with revenue, other operating costs, and capital expenditures can provide a more comprehensive view of the company's financial health and sustainability. Additionally, franchisees may want to inquire about the specific assets that contribute most significantly to these expenses and the policies used to determine their useful lives.