What was the net income for Pearce Bespoke in 2024?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company's net income for the year ended December 31, 2024, was a loss of $22,237. This figure is derived from the Statement of Operations, which details the revenues, operating expenses, and other income/expenses that contribute to the net income calculation.

Specifically, Pearce Bespoke generated total revenues of $1,190,697, comprised of franchise fees ($872,417), royalties ($98,271), advertising ($19,654), and other income ($200,355). However, the company also incurred significant operating expenses totaling $1,149,538, including franchise-related costs ($472,821), payroll and related costs ($462,733), general and administrative expenses ($172,454), advertising expenses ($39,030), and professional fees ($2,500). After accounting for interest expenses of $63,396, the company's net income resulted in a loss of $22,237.

For a prospective franchisee, this net loss indicates that Pearce Bespoke was not profitable at the corporate level in 2024. While the company generated substantial revenue, its expenses exceeded its income. This could raise concerns about the financial stability of the franchisor and its ability to support franchisees. However, it is important to consider that many franchise companies invest heavily in growth and development in their early years, which can result in temporary losses.

A potential franchisee should investigate further to understand the reasons behind the net loss and whether the company has a plan to achieve profitability in the future. Reviewing Pearce Bespoke's financial statements for previous years (2022 and 2023) and inquiring about their strategies for expense management and revenue growth would be prudent steps in evaluating the franchise opportunity.