What was the net loss for Fly Fitness in 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 figure is derived from the statement of cash flows, which details the increases and decreases in cash and cash equivalents during that period. The net loss is a critical indicator of Fly Fitness's financial performance during that year.

Several factors contributed to this net loss. These include operating expenses such as advertising and promotion ($35,169), amortization ($12,500), franchise costs ($15,937), salaries and wages ($73,248), and website expenses ($12,250). These expenses, totaling $155,540, offset the operating revenue, which was reported as $0 for the year. The financial statement also indicates cash outflows for investing activities, specifically $125,000 paid for intangible assets.

Prospective franchisees should carefully consider these financial results. A significant net loss, especially in the early stages of a franchise system, is not uncommon as the company invests in establishing its brand and infrastructure. However, it is essential to understand the reasons behind the loss and the strategies Fly Fitness has in place to improve its financial performance in subsequent years. Reviewing subsequent financial statements and understanding the company's plans for growth and profitability are crucial steps in evaluating the franchise opportunity.