What were the total operating expenses for Fly Fitness in the year ending December 31, 2023?

According to Fly Fitness's 2024 Franchise Disclosure Document, the total operating expenses for the year ending December 31, 2023, were $166,574. These expenses include various costs associated with running the Fly Fitness franchise system. The FDD provides a breakdown of these expenses.

The operating expenses consist of several categories. Advertising and promotion accounted for $32,778, amortization was $12,500, and bank and credit card charges were minimal at $10. Computer and internet expenses were also relatively low at $123, while travel expenses amounted to $1,459. Franchise costs totaled $7,819, and legal and professional fees were $14,080. Meals and entertainment were $145, and office expenses were $3,482. A significant portion of the operating expenses was attributed to leased employees, costing $74,004, and subcontractors, at $17,674. Website expenses were $2,500.

It is important to note that Fly Fitness's operating revenue for the same period was $0, resulting in a net loss of $166,574. This information is crucial for potential franchisees to understand the financial performance of the franchisor. Reviewing these figures can help in assessing the financial stability and potential risks associated with investing in a Fly Fitness franchise.

Prospective franchisees should carefully examine these expenses and consider how they relate to the services Fly Fitness provides to franchisees. Understanding the franchisor's cost structure can aid in evaluating the overall value and support offered by the franchise system.