What was the total cost of goods sold 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 cost of goods sold for the year ending December 31, 2024, was $2,349,027. This figure reflects the direct costs attributable to the goods that My Salon Suite sold during that year. For comparison, the cost of goods sold for the year ending December 31, 2023, was $2,310,482.
Understanding the cost of goods sold is crucial for prospective franchisees as it provides insight into the expenses directly related to the products or services My Salon Suite provides. This information, combined with revenue figures, helps in assessing the profitability and efficiency of the business model. A significant increase in the cost of goods sold without a corresponding increase in revenue could indicate potential issues with supply chain management, pricing strategies, or operational efficiency.
It's important for potential franchisees to analyze these figures in conjunction with other financial data provided in the FDD, such as revenue, operating expenses, and net income, to gain a comprehensive understanding of My Salon Suite's financial performance. Additionally, prospective franchisees should inquire about the specific components included in the cost of goods sold to better understand the factors that influence this expense category. This due diligence will enable them to make informed decisions about the financial viability of investing in a My Salon Suite franchise.