What were the equipment fees collected by Pearce Bespoke in 2023?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
abilities and Members' Equity (Deficiency) | $ | 929,411 | $ | 71,811 |
PEARCE BESPOKE FRANCHISING, LLC STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY (DEFICIENCY)
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | ||
| Revenues: Initial franchise fees Equipment fees | $ 164,210 168,000 | $ | - - |
| Franchise revenues | 153,238 | 36,593 | |
| Royalties | 47,008 | 6,031 | |
| Rebates | 40,079 | 426 | |
| Total Revenues | 572,535 | 43,050 | |
| Operating Expenses | 1,052,399 | 89,414 | |
| Net Income (Loss) | (4 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company collected $168,000 in equipment fees during the year 2023. This figure is part of the company's overall revenue, which totaled $572,535 for the same year.
For a prospective franchisee, understanding the equipment fees collected by the franchisor can provide insight into the revenue streams of the company. It also highlights the importance of the initial equipment package fee, which is $8,000 per franchisee, as mentioned elsewhere in the document. This fee is recognized as revenue upon the execution of the franchise agreement, indicating that Pearce Bespoke recognizes this revenue upfront.
Reviewing the financial statements, including revenue from equipment fees, helps potential franchisees assess the financial health and stability of Pearce Bespoke. This information, combined with other revenue streams like initial franchise fees and royalties, offers a comprehensive view of how the franchisor generates income. Understanding these financial details is crucial for making an informed investment decision.