What is the total amount of liabilities and equity for Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| ASSETS | 63,466.42 |
|---|---|
| Current Assets | |
| Checking/Savings | |
| Checkings | |
| Total Checking/Savings | 63,466.42 |
| Total Current Assets | 63,466.42 |
| Other Assets Accumulated Amortization License Fees | -25,000.00 125,000.00 |
| Total Other Assets | 100,000.00 |
| TOTAL ASSETS | 163,466.42 |
| LIABILITIES & EQUITY | 4,211.22 |
| Liabilities | |
| Current Liabilities | |
| Credit Cards | |
| Capital One Spark Business | |
| Total Credit Cards | 4,211.22 |
| Other Current Liabilities | 5,698.82 |
| Payroll Liabilities | |
| Total Other Current Liabilities | 5,698.82 |
| Total Current Liabilities | 9,910.04 |
| Total Liabilities | 9,910.04 |
| Equity Contributing Capital Retained Earnings Net Income | 500,000.00 -348,748.48 2,304.86 |
| Total Equity | 153,556.38 |
| TOTAL LIABILITIES & E |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the total liabilities and equity amount to $163,466.42 as of the balance sheet dated August 15, 2024. This figure represents the sum of all the company's obligations to creditors (liabilities) and the owners' stake in the company (equity). The liabilities consist of current liabilities, including credit card debt totaling $4,211.22 and other current liabilities of $5,698.82, bringing the total liabilities to $9,910.04.
The equity portion comprises contributing capital of $500,000.00, retained earnings of -$348,748.48, and net income of $2,304.86, resulting in total equity of $153,556.38. The sum of total liabilities ($9,910.04) and total equity ($153,556.38) equals the total liabilities and equity of $163,466.42, which matches the total assets.
For a prospective Fly Fitness franchisee, understanding the liabilities and equity structure provides insight into the company's financial stability and how it is financed. A high level of liabilities compared to equity might indicate higher financial risk, while a healthy equity balance suggests a stronger financial foundation. Reviewing these figures in conjunction with other financial statements and consulting with a financial advisor is crucial for making an informed investment decision.
It's important to note that these figures are from the balance sheet as of August 15, 2024, and may not reflect the most current financial position of Fly Fitness. Prospective franchisees should request the most recent financial statements and seek professional advice to assess the financial health and stability of the franchise opportunity.