What was the total operating profit for Fitstop in November 2022?

According to Fitstop's 2024 Franchise Disclosure Document, the operating profit for November 2022 was a loss of $92,866. This figure is derived from the profit and loss statement provided in the FDD. It's important to note that this reflects the performance of Fitstop USA, INC., not necessarily the performance of individual franchise locations.

This loss indicates that, for that specific month, Fitstop's expenses exceeded its gross profit. Expenses totaled $92,866, encompassing various costs such as flights and accommodation ($6,872), travel expenses ($6,348), employee salaries and wages ($16,667), management fees ($35,328), consulting fees ($22,120), and other operational costs. The gross profit for the same period was $0, leading to the reported operating loss.

Prospective franchisees should consider this information in the context of the company's overall financial performance and trajectory. While a single month's loss doesn't necessarily indicate long-term instability, it highlights the importance of understanding the factors that contribute to profitability. It would be prudent to inquire about the reasons for this loss and the strategies Fitstop has in place to improve its financial performance.

It is also important to note that the FDD includes a note from the independent auditor stating that management is required to evaluate conditions or events that could raise doubt about Fitstop USA, INC.'s ability to continue as a going concern within one year after the financial statements are issued. This statement does not necessarily mean that Fitstop is at risk of failing, but it does mean that prospective franchisees should carefully review Fitstop's financial statements and ask the franchisor about its plans for ensuring the company's long-term viability.