What was the net income (loss) for Fly Fitness for the year ended December 31, 2022?

According to Fly Fitness's 2024 Franchise Disclosure Document, the company experienced a net loss of $155,540 for the year ended December 31, 2022. This loss is detailed within the financial statements included in the FDD. The document also provides a breakdown of operating expenses that contributed to this net loss. These expenses include advertising and promotion ($35,169), amortization ($12,500), computer and internet costs ($10), franchise costs ($15,937), legal and professional fees ($3,318), meals and entertainment ($108), office expenses ($3,000), salaries and wages ($73,248), and website costs ($12,250). The total operating expenses for the year amounted to $155,540, resulting in the equivalent net loss.

For a prospective franchisee, this net loss indicates that Fly Fitness was not profitable during this period. It's important to consider this loss in the context of the company's overall financial health and trajectory. While a single year's loss doesn't necessarily indicate long-term instability, it warrants further investigation. A potential franchisee should review subsequent years' financial statements to determine if the company has improved its profitability. Understanding the reasons behind the loss, such as high start-up costs or investments in growth, is also crucial.

Furthermore, the FDD notes that the financial statements for 2022 were audited by an independent auditor, which adds a level of credibility to the reported figures. However, it is essential for franchisees to consult with a financial advisor to fully understand the implications of these financial statements. They should also inquire about Fly Fitness's strategies for improving profitability and ensuring the long-term financial stability of the franchise system. Examining the performance of existing Fly Fitness franchise locations can also provide valuable insights into the potential for financial success.