What was the total amount of Fitstop's fixed asset acquisitions in 2023?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Net Income (loss) | (1,193,655) | (365,606) | | Members' Contribution (Distribution) | (1,335) | (45) | | Members' Equity (Deficit) -Beginning | (365,651) | — | | Members' Equity (Deficit) -Ending | $ (1,560,641) | $ (365,651) |
FITSTOP USA, INC. STATEMENTS OF CASH FLOWS
| YEARS ENDED DECEMBER 31 | ||
|---|---|---|
| 2023 | 2022 | |
| Operating Activities | ||
| Net Profit(Loss) | $ (1,193,655) | $ (365,606) |
| Depreciation | 66,766 | — |
| Adjustments to reconcile net profit(loss) to net cash | ||
| provided by operating activities: | ||
| Changes in assets and liabilities | ||
| Prepaid Expenses | (21,795) | — |
| Other assets | (751) | — |
| Accounts payable and accrued expenses | 188,719 | 313 |
| Due to related parties | 828,986 | 834,932 |
| Unearned revenue | 50,000 | |
| Contract Liability | 194,167 | — |
| 112,437 | 469,639 | |
| Investing activities | ||
| Loan | 71,163 | — |
| Rental deposits | 47,890 | (204,040) |
| Fixe |
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the company's fixed asset acquisitions in 2023 totaled $303,380. This figure is derived from the statement of cash flows for the year ended December 31, 2023, and represents the amount Fitstop invested in acquiring fixed assets during that year.
For a prospective franchisee, understanding Fitstop's investment activities can provide insights into the company's growth strategy and capital expenditure decisions. Fixed assets typically include items like property, equipment, and other long-term assets used in the business operations. A significant investment in fixed assets might indicate expansion or upgrades to existing facilities.
It's important to note that this figure reflects the company's activity, not necessarily the investment required by a new franchisee to set up their own Fitstop location. Franchisees should refer to other sections of the FDD, such as Item 7, for detailed information on the estimated initial investment, including costs related to fixed assets like equipment and leasehold improvements needed to establish their franchise.