For Fly To Fit, what is included in the definition of 'Income'?

According to Fly To Fit's 2024 Franchise Disclosure Document, "Income" is defined as the total Gross Sales derived from the sale of goods or services, less sales tax, discounts, and returns. This definition is important for prospective franchisees as it clarifies how Fly To Fit calculates revenue for the purpose of financial performance representations and royalty calculations. Understanding this definition is crucial for franchisees to accurately assess their financial performance and obligations to Fly To Fit.

In 2023, the company-owned outlet had a total income of $221,095.66. This figure represents the gross sales less any sales tax, discounts, and returns, providing a clear picture of the revenue generated by the outlet before deducting any expenses. This income figure is used to calculate other financial metrics, such as gross profit and net income, which are essential for evaluating the overall profitability of the Fly To Fit business.

It is important to note that the FDD emphasizes that individual results may vary, and there is no assurance that a franchisee will achieve the same level of income as the company-owned outlet. Prospective franchisees should carefully consider this disclaimer and conduct their own due diligence to assess the potential financial performance of a Fly To Fit franchise in their specific location and circumstances. They should also request written substantiation of the information contained in Item 19 to gain a more comprehensive understanding of the financial performance representations.