What was the net income for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 revenue | 30,502 | 30,338 | |
| 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 | $159,370 | 166,470 | |
| Other comprehensive income | |||
| Foreign currency translation adjustment | 5,465 | 18,104 | |
| Comprehensive income | $164,835 Equity | 184,574 | |
| Balance – December 31, 2022 | $ 3,090,123 |
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the net income for the company in 2023 was $166,470. This figure represents the profit Precision Door Service retained after deducting all expenses from its total revenues and income for that year. Analyzing net income helps prospective franchisees understand the financial health and profitability of the franchisor.
In addition to net income, the FDD provides a breakdown of Precision Door Service's revenues and expenses. Total revenues and income for 2023 amounted to $451,879, derived from various sources such as franchise service fees ($169,842), synthetic royalties and master license fees ($28,705), franchise sales fees ($36,783), sales of products and services ($143,807), advertising and promotional fund revenue ($42,404), and other revenue ($30,338). The cost of products and services sold was $68,752, resulting in a gross profit of $383,127.
Operating expenses included selling expenses ($6,939), general and administrative expenses ($18,705), advertising and promotional fund expenses ($47,365), depreciation and amortization ($97,290), management expenses ($44,075), and bad debt expense ($2,283). These figures offer insight into the various costs Precision Door Service incurs to operate its business. By examining these financial statements, potential franchisees can assess the franchisor's financial stability and how efficiently it manages its operations. This information is crucial for making an informed investment decision.