Tapville Increases Revenue 10.2 X Year Over Year
Naperville, IL, May 2022. Tapville has released the audited financials for fiscal year 2021. The Tapville team is pleased with the results in this growth phase of building a one-of-a-kind, technology-enabled franchise company. Highlights in our financials include the following:
The Company increased revenue 10.2x year-over-year to $1,018,970. In addition, the Company deferred $231,170 in revenue for compliance of ASC 606 revenue recognition.
The Company increased gross margins 11x year-over-year to $540,365.
The Company signed agreements with a total of 52 locations including 37 new location agreements.
The current pipeline has deals in various stages of our sales funnel due to our marketing strategies that consist of identifying prospects for franchising through social media marketing, franchise broker networks, franchise sites, conventions, organic leads from our website, customer inquiries, and through franchise portals. We are also listed in the SBA franchise directory and in Entrepreneur Magazine. Our profitability is determined by closing franchise deals and collecting franchise fees and subsequent royalties.
Tapville’s competitive advantage is our unique business model with self-service technology paired with proprietary data insights for guest acquisition and loyalty. The Company incurred a loss in 2021, which is expected in the early growth phase of a franchise business. The business model is to sign franchise and development agreements, collect a franchise fee, then collect ongoing royalties when the location opens. To be profitable, the business model requires a scale of locations to be open and generating royalties. Royalties are paid monthly as a percentage of the franchisee's sales. Management is optimistic about future royalties from the 10–year franchise agreements signed in 2021.
Management is hopeful that all these factors will contribute to the company gaining visibility in the market, closing more franchises, generating enough revenues to run its operations, and eventually becoming profitable.
About Tapville
Tapville Franchising, Inc, “Tapville” is a franchisor & licensor of restaurant, kiosks and mobile units that specialize in self-pour & self-service technology. Tapville offers franchises for brick & mortar, retail, travel and entertainment segments. Tapville is headquartered in Naperville, IL.