What was the cost of goods sold for the Alloy franchise in 2023?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenues: | ||||
| Franchise fees | $1,384,305 | $853,791 | $239,379 | |
| Technology fees | 769,849 | 305,129 | 127,112 | |
| Royalties | 1,207,992 | 443,042 | 196,002 | |
| Brand development fund fees | 368,345 | 143,385 | 65,334 | |
| Retail sales | 48,815 | 27,851 | 20,717 | |
| Vendor rebate sales | 221,538 | 92,353 | 45,199 | |
| Sales assistant income | 12,000 | 75,545 | 6,750 | |
| Other revenues | 20,594 | 6,042 | 415 | |
| Total revenues | 4,033,438 | 1,947,138 | 700,908 | |
| Cost of goods sold | 32,196 | 18,220 | 14,944 | |
| Gross profit | 4,001,242 | 1,928,918 | 685,964 | |
| Selling, general and administrative expenses | 4,064,777 | 2,623,444 | 1,258,484 | |
| Net loss | (63,535) | (694,526) | (572,520) | |
| Members' deficit - beginning | (2,027,100) | (958,691) | (328,199) | |
| Members' contributions | - | 8,921 | 465,992 | |
| Members' distributions | (268,517) | (382,804) | (523,964) | |
| MEMBERS' DEFICIT - ENDING | $(2,359,152) | $(2,027,100) | $(958,691) |
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the cost of goods sold for the Alloy franchise in 2023 was $18,220. This figure represents the direct costs attributable to the production of the goods or services sold by Alloy during that year.
Understanding the cost of goods sold is crucial for prospective franchisees as it directly impacts the gross profit and overall profitability of the business. By subtracting the cost of goods sold from total revenues, one can determine the gross profit, which is a key indicator of how efficiently Alloy manages its production costs. A lower cost of goods sold relative to revenue generally indicates better efficiency and higher potential profits.
For Alloy, the cost of goods sold can include items such as the cost of raw materials, direct labor, and other direct expenses related to providing fitness services or products. Monitoring this figure over time, as well as comparing it to industry benchmarks, can help franchisees identify areas for improvement and make informed business decisions. It's also important to note that these figures reflect the performance of the company itself, not necessarily an individual franchise location.
Prospective franchisees should carefully analyze these financial statements and consider how their own operational strategies and local market conditions might influence their cost of goods sold. Consulting with a financial advisor to interpret these figures in the context of their specific business plan is highly recommended.