What was the amount of 'contra revenue' for The Standardx in the more recent year presented?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Segment Adjusted EBITDA | $ | 312 | $ | 304 |
| Unallocated overhead expenses | (40) | (46) | ||
| Eliminations | 1 | 1 | ||
| Contra revenue | (20) | (13) | ||
| Revenues for reimbursed costs | 886 | 802 | ||
| Reimbursed costs | (902) | (836) | ||
| Stock-based compensation expense (Note 14) (1) | (31) | (31) | ||
| Transaction and integration costs | (23) | (8) | ||
| Depreciation and amortization | (80) | (92) | ||
| Equity earnings (losses) from unconsolidated hospitality ventures | (12) | 75 | ||
| Interest expense | (66) | (38) | ||
| Gains on sales of real estate and other | — | 403 | ||
| Asset impairments | (4) | (17) | ||
| Other income (loss), net | 43 | 54 | ||
| Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA | (12) | (17) | ||
| Income before income taxes | $ | 52 | $ | 541 |
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the 'contra revenue' for the three months ended March 31, 2025, was ($20). In comparison, for the three months ended March 31, 2024, the contra revenue was ($13). This indicates an increase in contra revenue from 2024 to 2025.
Contra revenue typically represents deductions from gross revenue due to discounts, allowances, or returns. For a prospective The Standardx franchisee, understanding contra revenue is important because it directly impacts the actual revenue received. Higher contra revenue could mean lower net revenue, affecting profitability.
Franchisees should inquire about the factors contributing to contra revenue, such as specific promotional activities or types of discounts offered. Monitoring these trends can help in forecasting revenue and managing expenses effectively. It's also important to understand how contra revenue is accounted for and reported in The Standardx's financial statements to ensure transparency and accuracy in financial analysis.