What was the depreciation and amortization expense for Alloy for the year ended December 31, 2023?

According to Alloy's 2025 Franchise Disclosure Document, the depreciation and amortization expense for the year ending December 31, 2023, was $4,541. Depreciation and amortization are accounting methods used to allocate the cost of tangible (depreciation) and intangible (amortization) assets over their useful lives. These expenses reflect the reduction in value of Alloy's assets due to wear and tear, obsolescence, or usage.

For a prospective franchisee, understanding depreciation and amortization is crucial for assessing the financial health and stability of Alloy. While these are non-cash expenses, they impact the company's net income and, consequently, its profitability. Lower depreciation and amortization expenses might indicate newer assets or longer asset lifecycles, while higher expenses could suggest aging assets or more aggressive depreciation policies.

It's important to note that this figure represents the depreciation and amortization expense at the corporate level for Alloy Personal Training, LLC, and not the expenses a franchisee would incur operating their own Alloy franchise location. Franchisees will have their own depreciation and amortization expenses related to equipment, leasehold improvements, and other assets they acquire for their business. Franchisees should consult with a financial advisor to understand how these expenses will impact their individual franchise's profitability and tax obligations.

Overall, the depreciation and amortization expense provides insight into Alloy's capital expenditure and asset management strategies. Prospective franchisees should consider this information in conjunction with other financial metrics to gain a comprehensive understanding of the franchisor's financial performance and stability.