What was the total amount of Fitstop's rental deposits for the year 2022?
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 |
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the company's rental deposits experienced a decrease of $204,040 during the year 2022.
This figure is part of the cash flow statement, which tracks the movement of cash both into and out of the company. In this case, the negative value indicates a reduction in cash tied up in rental deposits. This could be due to a variety of reasons, such as the termination of leases and the return of deposits, or the application of deposits to rent expenses.
For a prospective Fitstop franchisee, this information provides insight into the company's financial management and its handling of lease-related assets. While a decrease in rental deposits might not directly impact a franchisee's operations, it's a factor to consider when evaluating the overall financial health and stability of the franchisor. It would be prudent for a potential franchisee to inquire about the reasons behind this decrease and how Fitstop manages its lease agreements and rental deposits.