What was the advertising and promotional fund expense for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
0 335,404 (4,769) | $ 2,944,568 168,428 (22,873) | | Total Member's Equity | 3,111,215 | 3,090,123 | | Total liabilities and member's equity | $ 3,198,931 | $ 3,161,602 |
Combined Statements of Operations and Comprehensive Income ($000's)
| For the years ended December 31, | 2023 | (Restated) 2022 |
|---|---|---|
| Revenues and income | ||
| Franchise service fees | $ 169,842 | 152,248 |
| Synthetic royalties and master license fees | 28,705 | 22,879 |
| Franchise sales fees | 36,783 | 13,642 |
| Sales of products and services | 143,807 | 123,984 |
| Advertising and promotional fund revenue | 42,404 | 39,184 |
| Other | 30,338 | 32,014 |
| revenue | ||
| Total revenues and income | 451,879 | 383,951 |
| Cost of Sales | ||
| Products and services | 68,752 | 62,493 |
| Gross Profit | 383,127 | 321,458 |
| Selling expense | 6,939 | 8,274 |
| General and administrative expense | 18,705 | 9,033 |
| Advertising and promotional fund expense | 47,365 | 42,987 |
| Depreciation and amortization | 97,290 | 82,921 |
| Management expenses |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the advertising and promotional fund expense for the year ending December 31, 2023, was $47,365. This figure represents the total amount Precision Door Service spent on advertising and promotional activities during that year. These expenses are funded by advertising and promotional fund revenues, which totaled $42,404 in 2023.
It is important to note that Precision Door Service acts as the principal in transactions related to the MAP (marketing, advertising, and promotional) fund. This means that Precision Door Service has the responsibility of administering the fund, keeping unused MAP fees in segregated bank accounts, and using these fees for marketing and promotion of the individual businesses. The MAP fund contributions and expenditures are reported on a gross basis in the financial statements.
Prospective franchisees should be aware of how these advertising funds are collected and spent, as this directly impacts the marketing efforts supporting their franchise. Understanding the difference between the revenue generated for the fund ($42,404) and the expenses ($47,365) can provide insights into Precision Door Service's approach to marketing investments. Franchisees may want to inquire about the specific strategies and allocation of these funds to ensure they align with their business goals.