What was the net income (loss) for Fitstop USA, Inc. at the end of 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 net income (loss) for Fitstop USA, Inc. at the end of 2023 was a loss of $1,193,655. In 2022, the company also experienced a net loss of $365,606. This indicates that Fitstop USA, Inc. has not yet achieved profitability in its operations.
In addition to net income (loss), the FDD provides details on Fitstop's revenues and expenses. In 2023, Fitstop's total revenues amounted to $74,595, comprised of $25,833 in franchise fees and $48,762 in other income. However, the company's general and administrative expenses significantly exceeded its revenues, totaling $1,268,250.
The financial statement also shows members' equity deficit. The members' equity deficit at the end of 2023 was $(1,560,641) compared to $(365,651) at the end of 2022. Prospective franchisees should carefully review these financial statements and consider consulting with a financial advisor to fully understand the financial health and stability of Fitstop USA, Inc.