What was the total amount of royalties My Salon Suite collected in 2023?
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 royalties collected in 2023 amounted to $49,940,078. This figure represents the income My Salon Suite received from its franchisees based on a percentage of their sales. Royalties are a crucial revenue stream for franchisors like My Salon Suite, as they reflect the ongoing performance and success of the franchise system.
For a prospective franchisee, this number indicates the scale of the My Salon Suite franchise network and its overall financial health. A substantial royalty income suggests a well-established brand with numerous operating units generating consistent revenue. It also demonstrates the franchisor's ability to support and grow its franchise system, as royalties are often reinvested into training, marketing, and other resources that benefit franchisees.
It's important for potential franchisees to understand how the royalty is calculated (e.g., percentage of gross sales) and what services or support they receive in exchange for these payments. Reviewing the trend in royalty income over several years can also provide insights into the stability and growth trajectory of the My Salon Suite franchise system. This information, combined with other financial data in the FDD, can help franchisees make an informed investment decision.