What was the net loss for the Alloy franchise in 2024?
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 net loss for the company in 2024 was $63,535. This figure is part of a larger financial overview that includes revenue, cost of goods sold, gross profit, and selling, general, and administrative expenses. These figures provide a snapshot of Alloy's financial performance during that year.
For a prospective franchisee, this net loss indicates that Alloy's expenses exceeded its revenues in 2024. While the company generated total revenues of $4,033,438 and a gross profit of $4,001,242, its selling, general, and administrative expenses amounted to $4,064,777, resulting in the net loss. It's important to consider this loss in the context of the company's overall financial trends, as the FDD also shows net losses for 2023 and 2022, though the 2024 loss is significantly smaller than the previous years.
It is essential for potential franchisees to investigate the reasons behind the net loss and understand how Alloy plans to address it. Factors contributing to the loss could include high administrative costs, investments in growth, or other strategic decisions. Reviewing Alloy's financial statements and discussing these figures with the franchisor can provide valuable insights into the financial health and stability of the franchise system. Furthermore, prospective franchisees should compare these figures with industry benchmarks to assess Alloy's performance relative to its competitors.