What was the net income for My Salon Suite in 2023?
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 net income for the year ended December 31, 2023, was $12,569,087. This figure represents the company's profit after all revenues and expenses, including cost of goods, selling, general, and administrative expenses, depreciation and amortization, interest income, foreign currency exchange, and income tax expenses, have been accounted for. In comparison, the net income for the year ended December 31, 2022, was $17,655,295.
My Salon Suite's revenues for 2023 totaled $72,355,048, comprised of franchise sales ($3,508,446), royalties ($49,940,078), rental income ($13,118,572), and other revenue ($5,787,952). The total costs and expenses amounted to $50,915,177, resulting in an operating income of $21,439,871. Other income, net, which includes interest income and foreign currency exchange, contributed an additional $72,208, leading to an income before taxes of $21,512,079. After accounting for income tax expenses of $8,942,992, the net income was $12,569,087.
For a prospective franchisee, understanding the net income is crucial as it reflects the overall financial health and profitability of My Salon Suite. While past performance does not guarantee future results, a consistent history of net income suggests a stable and potentially successful business model. Franchisees should consider these figures in conjunction with other financial metrics and market factors to assess the viability of investing in a My Salon Suite franchise. It's also worth noting the decrease in net income from 2022 to 2023, which could prompt further investigation into the reasons behind this change.