What was the amount of members' contribution/distribution for Fitstop in 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 | |
FITSTOP USA, INC. STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY
| YEARS ENDED DECEMBER 31 | ||
|---|---|---|
| 2023 | 2022 | |
| Revenues | ||
| Franchise fees | $ 25,833 | $ — |
| Other income | 48,762 | — |
| Total Revenues |
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the members' contribution or distribution for the year ended December 31, 2023, was a negative $1,335. This indicates that $1,335 was distributed to members rather than contributed by them during that period. This figure is part of the broader financial statements audited by Muhammad Zubairy, CPA PC.
For a prospective Fitstop franchisee, this detail provides insight into the company's financial activities related to its members. A negative value in this context suggests that Fitstop distributed funds to its members, which could be due to profit sharing, returns on investment, or other financial arrangements. Understanding the reasons behind such distributions is crucial for franchisees to assess the financial stability and member relations of the company.
It's important to note that this figure is relatively small compared to the net loss of $1,193,655 for the same year. This suggests that while there was a distribution to members, it did not significantly impact the overall financial performance of Fitstop. Franchisees should consider this information in conjunction with other financial data, such as revenues, expenses, and cash flow, to gain a comprehensive understanding of the company's financial health.
Prospective franchisees should also inquire about the specific criteria and conditions under which such distributions are made to members. Understanding the historical trends and future expectations regarding members' contributions and distributions can help franchisees make informed decisions about their investment and involvement with Fitstop.