What was the total amount of My Salon Suite's selling, general, and administrative expenses 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 company's selling, general, and administrative expenses for the year ending December 31, 2024, totaled $66,485,526. This figure represents the costs associated with managing and operating the My Salon Suite franchise system, including salaries, marketing, and other overhead expenses. These expenses are a key component in understanding the overall financial health and profitability of My Salon Suite.
For a prospective franchisee, understanding the selling, general, and administrative expenses is crucial because it provides insight into how efficiently My Salon Suite manages its corporate operations. A high figure in this category relative to revenue could indicate inefficiencies or substantial investments in growth, while a lower figure might suggest a more streamlined operation. It's important to note that these expenses do not directly reflect the costs of running an individual franchise location, but rather the costs incurred by the franchisor to support the entire franchise network.
When evaluating this information, potential franchisees should compare My Salon Suite's selling, general, and administrative expenses to those of other franchise systems in the salon suite industry to benchmark its operational efficiency. Additionally, it would be prudent to analyze the trend of these expenses over several years to determine whether they are increasing, decreasing, or remaining stable. This analysis can help a franchisee assess the financial stability and management effectiveness of My Salon Suite.