What was the total cost of goods sold for My Salon Suite in 2022?
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 total cost of goods sold for the year ended December 31, 2022, was $3,374,481. This figure is part of the broader financial performance data presented in the document, offering insight into the expenses directly associated with the services or products that My Salon Suite provides.
Understanding the cost of goods sold is crucial for prospective franchisees as it directly impacts the profitability of their My Salon Suite franchise. It represents the direct costs attributable to the production of goods or services sold by the company. A higher cost of goods sold can reduce the profit margin, while a lower cost can improve it. Therefore, franchisees should analyze this figure in conjunction with revenue data to assess the financial health and efficiency of the franchise system.
It's important to note that cost of goods sold does not include indirect expenses such as selling, general, and administrative costs, which for My Salon Suite totaled $37,229,030 in 2022. Franchisees should consider all these operating expenses when evaluating the overall financial performance and potential profitability of a My Salon Suite franchise. Reviewing these figures in the FDD helps potential franchisees understand the financial dynamics of the My Salon Suite business model.