What was the gross profit for Precision Door Service in 2024?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
3,027,260 | 3,111,215 | | Total liabilities and member's equity | $ 3,115,790 | $ 3,198,930 |
Combined Statements of Operations and Comprehensive Income ($000's)
| For the years ended December 31, | 2024 | 2023 |
|---|---|---|
| Revenues and income | ||
| Franchise service fees | $ 180,984 | 169,842 |
| Synthetic royalties and master license fees | 28,242 | 28,705 |
| Franchise sales fees | 33,680 | 36,783 |
| Sales of products and services | 140,458 | 143,807 |
| Advertising and promotional fund revenue | 47,800 | 42,404 |
| Other | 30,502 | 30,338 |
| revenue | ||
| Total revenues and income | 461,666 | 451,879 |
| Cost of Sales | ||
| Products and services | 72,612 | 68,752 |
| Gross Profit | 389,054 | 383,127 |
| Selling expense | 15,364 | 6,939 |
| General and administrative expense | 17,967 | 18,705 |
| Advertising and promotional fund expense | 49,981 | 47,365 |
| Depreciation and amortization | 95,532 | 97,290 |
| Management expenses | 47,126 | 44,075 |
| Bad debt expense | 3,714 | 2,283 |
| Net income | $ 1 |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the gross profit for the year 2024 was $389,054. This figure represents the revenue Precision Door Service generated after subtracting the cost of products and services sold. In comparison, the gross profit for 2023 was $383,127.
Gross profit is a key indicator of a company's profitability and efficiency in managing its production costs. For a prospective franchisee, understanding the gross profit margin helps in assessing the financial health and potential profitability of Precision Door Service. A higher gross profit margin indicates that the company is efficient in controlling its costs of goods sold, which can translate to better profitability for franchisees as well.
It's important to note that while gross profit provides a snapshot of revenue minus the direct costs of sales, it does not account for other operating expenses such as selling, general, and administrative expenses, advertising, depreciation, and management expenses. These additional expenses are further deducted to arrive at the net income, which was $159,370 for 2024. Therefore, while the gross profit is a positive indicator, prospective franchisees should also consider the net income and other expenses to get a comprehensive view of the company's financial performance.