What was the total rental income for My Salon Suite in 2023?
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 |
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 rental income for the company in 2023 was $13,118,572. This figure represents income derived from subleasing compartmentalized suites to beauty professionals. These suites are typically leased at a weekly rate for terms of about one year.
For a prospective franchisee, this indicates that a significant portion of My Salon Suite's revenue is generated through rental income from these subleases. Understanding the factors that influence rental income, such as occupancy rates, lease terms, and market demand, is crucial for franchisees to assess the potential profitability of their own locations. This revenue stream is a key component of the My Salon Suite business model.
It's also worth noting that My Salon Suite recognizes rental income on a weekly basis over the life of the lease, provided that collectability is probable. This approach to revenue recognition provides a steady and predictable income stream for the company. Franchisees should investigate how local market conditions and their ability to maintain high occupancy rates will impact their rental income and overall financial performance.
In comparison to 2022, where the rental income was $11,907,621, there was an increase in rental income of over a million dollars. This increase could be due to a number of factors, including increased occupancy rates, higher rental rates, or the addition of new locations. Franchisees should inquire about the factors that contributed to this increase and whether similar growth can be expected in the future.