What was the amount of franchise fees Fitstop collected for the year ended December 31, 2023?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
ANCE SHEETS
| Prepaid Expenses | (21,795) | | — | |---|---|---|---| | Other assets | (751) | | — | | Accounts payable and accrued expenses | 1 88,719 | 313 | | | Due to related parties | 8 28,986 | 834,932 | |
**FITST
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the company collected $25,833 in franchise fees for the year ended December 31, 2023. In 2022, Fitstop did not collect any revenue from franchise fees.
This figure represents the initial payments made by new franchisees to Fitstop for the right to operate a franchise. This revenue stream is crucial for Fitstop as it reflects the growth and expansion of the franchise system. The significant increase from $0 in 2022 to $25,833 in 2023 indicates a substantial growth in the number of new Fitstop franchises during that period.
Prospective franchisees should consider this information in the context of Fitstop's overall financial health and growth trajectory. While the franchise fee revenue is relatively modest, it is important to note that Fitstop also generates revenue from other sources, including royalties and other income. Understanding the various revenue streams and expense categories can provide a more comprehensive view of the financial performance of Fitstop.