As of May 31, 2024, what were the total liabilities of Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
uring the audit.
RGP Associates Certifical Public Accountants, LLC Omaha, Nebraska February 20, 2024
BALANCE SHEET
| December 31 | 2023 |
|---|---|
| ASSETS | |
| Current assets | |
| Cash and cash equivalents | $ 114,928 |
| Total current assets | $ 114,928 |
| Other assets | |
| Intangible assets, less accumulated amortization of $25,000 (note 2) | $ 100,000 |
| Total other assets | $ 100,000 |
| TOTAL ASSETS | $ 214,928 |
| LIABILITIES AND MEMBERS' EQUITY | |
| Current liabilities | |
| Accounts payable | $ 5,200 |
| Credit cards payable | 7,978 |
| Accrued leased employee cost | 5,699 |
| Total current liabilities | $ 18,877 |
| Long-term liabilities | |
| Deferred |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, as of December 31, 2023, the company's total liabilities were $68,877. This figure is broken down into current liabilities totaling $18,877, which includes accounts payable of $5,200, credit cards payable of $7,978, and accrued leased employee cost of $5,699. Additionally, Fly Fitness had long-term liabilities consisting of deferred franchise fee revenue amounting to $50,000.
It is important to note that the balance sheet included in the FDD is as of December 31, 2023. While the FDD mentions an unaudited balance sheet as of May 31, 2024, the excerpt does not provide the actual figures from that balance sheet. Therefore, the most recent detailed breakdown of liabilities available in this excerpt is from the audited financial statements as of December 31, 2023.
A prospective franchisee should request the balance sheet as of May 31, 2024, to understand the most current financial position of Fly Fitness. Understanding the liabilities of a franchisor is crucial for potential franchisees as it provides insight into the financial stability and obligations of the company. This information can help franchisees assess the financial health of Fly Fitness and make informed decisions about investing in a franchise.