How much did My Salon Suite spend on acquisition transaction costs in 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
Accrued liabilities consist of the following at December 31:
| 2024 | 2023 | |
|---|---|---|
| Employee benefits and compensation | $ 3,170,135 | $ 2,334,499 |
| Accrued payables to franchisees | 2,434,987 | 2,167,953 |
| Event related accruals | 1,325,165 | 1,340,970 |
| Customer deposits | 1,388,782 | 1,614,710 |
| Acquisition transaction costs | - | 2,439,816 |
| Accrued professional fees | 1,898,961 | - |
| Other | 2,840,265 | 2,905,669 |
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 incurred $2,439,816 in acquisition transaction costs during the year 2023. This figure is part of the accrued liabilities reported in the financial statements.
Acquisition transaction costs typically include expenses related to the purchase of other businesses or assets, such as legal fees, due diligence costs, and other advisory fees. For a prospective franchisee, this indicates that My Salon Suite is actively involved in expanding its business through acquisitions, which could lead to increased brand recognition and potentially more resources for franchisees.
It's important to note that while this figure reflects the company's expenses, it doesn't directly impact the day-to-day operations or costs for individual franchisees. However, understanding how My Salon Suite manages its finances and invests in growth can provide valuable insight into the overall health and stability of the franchise system.