What were the distributions from member for Alloy 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 distributions from members totaled $(382,804) in 2023. This figure represents the amount of money or value distributed from the company to its members during that year.
For a prospective franchisee, understanding members' distributions is crucial because it provides insight into the financial management and profitability of Alloy. A high distribution amount could indicate strong financial performance, but it could also mean less reinvestment in the business for growth and support. Conversely, lower distributions might suggest reinvestment or financial challenges.
It's important to note that this figure is part of the overall financial statements of Alloy, and should be considered alongside other factors such as revenues, expenses, and net income to get a comprehensive understanding of the company's financial health. A potential franchisee should consult with a financial advisor to fully understand the implications of these distributions and how they might affect the long-term stability and growth of the franchise system.