What was the net income (loss) for Fly Fitness for the year ended December 31, 2023?

According to Fly Fitness's 2024 Franchise Disclosure Document, the net income (loss) for the year ended December 31, 2023, was a loss of $166,574. This figure is derived from the company's financial statements, which were audited by an independent auditor. The FDD includes these audited financial statements for the fiscal years ending December 31, 2023, and December 31, 2022.

It is important to note that Fly Fitness's operating revenue for the same period was $0. The operating expenses totaled $166,574, which contributed to the net loss. These expenses included advertising and promotion ($32,778), amortization ($12,500), bank and credit card charges ($10), computer and internet expenses ($123), travel ($1,459), franchise costs ($7,819), legal and professional fees ($14,080), meals and entertainment ($145), office expenses ($3,482), leased employees ($74,004), subcontractors ($17,674), and website costs ($2,500).

For a prospective franchisee, this information is crucial for understanding the financial performance of Fly Fitness. A significant net loss, coupled with zero operating revenue, may raise concerns about the financial stability and business model of the franchisor. It's essential to investigate the reasons behind these figures and assess the franchisor's plans for improving financial performance.

Given that Fly Fitness had only issued one franchise in Loveland, Colorado, which was not yet open as of the end of 2023, the lack of operating revenue may be attributed to the early stage of the franchise system. However, prospective franchisees should conduct thorough due diligence, including seeking clarification from Fly Fitness regarding their strategies for generating revenue and achieving profitability in the future.