What was the total loss from operations for Exit in 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
e - related parties | 351,676 | 816,338 | - | | Current portion of deferred revenue | 3,140,717 | 3,636,617 | 3,523,417 | | Total current liabilities | 12,543,040 | 14,310,735 | 12,022,909 | | Long-term liabilities | | | | | Notes payable, net of current | 1,559,052 | 1,889,505 | 2,250,108 | | Deferred income tax liability - Canadian taxes | 414,995 | 312,000 | 215,000 | | Deferred revenue | 3,381,807 | 3,929,136 | 4,854,640 | | Other non-current liabilities | 1,005,000 | - | - | | Total long-term liabilities | 6,360,854 | 6,130,641 | 7,319,748 | | Stockholders' equity | | | | | Common stock, $.07 par value, 100 shares authorized, issued, and outstanding at December 31, 2024 Retained earnings Accumulated other comprehensive loss Equity attributable to controlling interest | 7 8,147,295 (1,979,828) 6,167,474 | 7 8,075,962 (1,817,038) 6,258,931 | 7 9,403,248 (1,824,376) 7,578,879 | | Non-controlling interests | (2,329) | (1,713) | (1,250) | | Total stockholders' equity | 6,165,145 | 6,257,218 | 7,577,629 | | Total liabilities and stockholders' equity | $ 25,069,039 | $ 26,698,594 | $ 26,920,286 |
EXIT REALTY CORP. INTERNATIONAL CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| 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 an |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the loss from operations for the year 2024 was $(1,151,447). This figure represents the financial result of Exit's core business activities before accounting for other income, expenses, or taxes. A loss from operations indicates that the company's operating expenses exceeded its revenue during this period.
For a prospective franchisee, this information is crucial as it provides insight into the financial health and stability of Exit. A significant loss from operations, such as the one reported for 2024, may raise concerns about the franchisor's ability to support its franchisees and invest in the brand's growth. It is important to note that the 2023 loss from operations was $(1,892,933) and the 2022 loss was $(851,448).
It is essential for potential franchisees to investigate the reasons behind this loss and understand Exit's plan to improve its financial performance. The FDD mentions that Exit is implementing cost-cutting measures and projects that the 2025 budgeted operations will be sufficient to fund the company's operations and strategic objectives. Prospective franchisees should inquire about the specific measures being taken and the expected timeline for achieving profitability.
Furthermore, it's advisable to compare Exit's financial performance with that of other franchises in the real estate industry to assess its relative position and identify any potential risks or opportunities. Reviewing multiple years of financial statements, as provided in the FDD, can help identify trends and provide a more comprehensive understanding of the franchisor's financial stability.