What was the total amount of rental income for My Salon Suite in 2024?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
1,000 | 1,000 | | Additional paid-in capital | 363,125,409 | 297,598,135 | | Retained earnings | 79,627,020 | 69,958,770 | | Accumulated other comprehensive loss | (100,769) | - | | | | | | Total member's equity | 442,652,660 | 367,557,905 | | Total liabilities and member's equity | $ 564,392,813 | $ 475,872,065 |
Consolidated Statements of Operations
| For the years ended December 31, | 2024 | 2023 |
|---|---|---|
| Revenues | ||
| Franchise sales | $ 4,110,484 | $ 3,508,446 |
| Royalties | 69,773,999 | 49,940,078 |
| Rental income | 17,316,296 | 13,118,572 |
| Other revenue | 6,989,429 | 5,787,952 |
| Total revenues | 98,190,208 | 72,355,048 |
| Costs and expenses | ||
| Cost of goods gold | 2,349,027 | 2,310,482 |
| Selling, general, and administrative | 66,485,526 | 44,067,902 |
| Depreciation and amortization | 11,002,904 | 4,536,793 |
| Total costs and expenses | 79,837,457 | 50,915,177 |
| Operating Income | 18,352,751 | 21,439,871 |
| Other income/(expenses) | ||
| Interest income | 272,192 | 64 |
Source: Item 17 — (r) of the FDD and Section 13 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law. (FDD pages 230–274)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the total rental income for the company in 2024 was $17,316,296. This figure represents the income My Salon Suite received from renting out salon suites to beauty professionals. In comparison, the rental income for 2023 was $13,118,572, indicating a significant increase in rental income year over year. This rental income is a key revenue stream for My Salon Suite, contributing to the overall financial performance of the company.
For a prospective franchisee, understanding the rental income is crucial as it reflects the demand for salon suite rentals and the potential revenue that a franchisee can generate from their location. The increase in rental income from 2023 to 2024 suggests a growing market and strong performance in this area. This information can help franchisees assess the financial viability and potential profitability of investing in a My Salon Suite franchise.
It's important to note that rental income is just one component of My Salon Suite's total revenue, which also includes franchise sales, royalties, and other revenue streams. However, the substantial amount of rental income highlights the importance of the salon suite rental model to the company's overall financial health. Franchisees should consider this factor when evaluating the potential return on investment and the long-term sustainability of the franchise.