What was the credit loss (recovery) expense for Exit in 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue | $ 15,421,227 | $ 15,991,792 | $ 17,858,393 |
| Operating expenses | |||
| Advertising and promotion | 2,335,585 | 2,858,751 | 2,880,073 |
| Amortization and depreciation | 65,563 | 92,338 | 125,888 |
| Ancillary expenses | 155,129 | 159,378 | 209,692 |
| Credit loss (recovery) expense | 351,755 | 1,304,738 | 382,936 |
| Bank charges | 261,316 | 246,186 | 234,654 |
| Commissions | 68,380 | 198,365 | 111,540 |
| Contract services | 951,910 | 883,805 | 972,546 |
| Fees and dues | 27,450 | 30,231 | 33,494 |
| Information technology | 504,587 | 519,057 | 470,750 |
| Insurance | 158,867 | 146,300 | 97,700 |
| Office and general | 83,168 | 64,051 | 83,463 |
| Postage and delivery | 50,372 | 77,943 | 102,833 |
| Professional fees | 921,810 | 512,417 | 334,687 |
| Rent | 302,011 | 305,396 | 293,000 |
| Repairs and maintenance | - | 2,787 | 8,364 |
| Salaries and benefits | 7,692,843 | 7,205,125 | 7,900,241 |
| Telephone | 18,920 | 25,306 | 26,585 |
| Trade shows and conventions | 1,778,283 | 2,020,763 | 2,845,425 |
| Training and development | 712,731 | 1,078,879 | 1,452,332 |
| Travel | 87,949 | 147,007 | 136,233 |
| Vehicles | 7,335 | 5,902 | 7,405 |
| Miscellaneous | 36,710 | - | - |
| Total operating expenses | 16,572,674 | 17,884,725 | 18,709,841 |
| Loss from operations | (1,151,447) | (1,892,933) | (851,448) |
| Other income (expense) | |||
| Gain on sale of property and equipment | 2,125,033 | - | 20,291 |
| Impairment of digital assets | - | - | (1,820,185) |
| Legal settlement | (1,500,000) | - | - |
| Interest | 137,304 | 78,187 | 170,816 |
| Total other income (expense) | 762,337 | 78,187 | (1,629,078) |
| Loss before provision for income taxes and non-controlling | |||
| interests | (389,110) | (1,814,746) | (2,480,526) |
| Benefit for income taxes | (459,827) | (486,997) | (342,266) |
| Consolidated net income (loss) | 70,717 | (1,327,749) | (2,138,260) |
| Noncontrolling int |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the credit loss (recovery) expense for the company in 2024 was $0. This indicates that Exit did not experience a credit loss or recovery in 2024.
In 2023, Exit had a credit loss (recovery) expense of $1,304,738, and in 2022, the expense was $382,936. The absence of this expense in 2024 could be a positive sign, suggesting improved financial stability or more effective credit management practices during that year.
Prospective franchisees should inquire about the factors contributing to the change in credit loss (recovery) expense from 2023 and 2022 to 2024. Understanding the reasons behind this variance can provide insights into Exit's financial management and risk assessment strategies.