What was the net loss reported for Extreme Art Studio as of December 31, 2023?

According to the 2024 Franchise Disclosure Document, Extreme Art Studio reported a net loss of $7,621 as of December 31, 2023. This figure is derived from the Statement of Operations for the year ended December 31, 2023, which details the operating revenues, operating expenses, and ultimately, the net loss. The document also includes a statement of cash flows that reflects this net loss in the context of cash flow from operating activities.

It's important to note that Extreme Art Studio Franchising, LLC was formed on July 20, 2023, meaning the reported net loss reflects the financial performance during its initial partial year of operation. The company's financial statements were audited by Kezas 3 Dunlary, and the audit report expresses an opinion that the financial statements present fairly the financial position and results of operations of Extreme Art Studio Franchising, LLC as of December 31, 2023.

For a prospective franchisee, this net loss indicates that the franchisor was not profitable during its initial period. While not uncommon for a new franchise system, it would be prudent to investigate the reasons for the loss, the franchisor's plans to achieve profitability, and how this might impact the support and services they can provide to franchisees. Additionally, the franchisee should consider this loss in conjunction with other financial metrics and information provided in the FDD to assess the overall financial health and stability of Extreme Art Studio.