What was the total amount of credit card payable for Fly Fitness as of December 31, 2023?
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, the total amount of credit cards payable as of December 31, 2023, was $7,978. This figure represents the outstanding balance Fly Fitness owed to credit card companies at the close of the fiscal year. This liability is a part of the company's current liabilities, which totaled $18,877.
For a prospective franchisee, understanding the franchisor's financial liabilities can provide insights into the financial health and stability of the company. A manageable level of credit card debt suggests that Fly Fitness is handling its short-term obligations effectively. However, it's essential to consider this figure in relation to the company's assets and overall financial performance.
It's also worth noting that Fly Fitness had total assets of $214,928 and total liabilities of $68,877 as of the same date. Reviewing these figures in conjunction with the credit card payable amount can give a more comprehensive view of the company's financial standing. Prospective franchisees should analyze these financial statements carefully and consult with a financial advisor to assess the potential risks and opportunities associated with investing in a Fly Fitness franchise.