What was the net income for the company-owned Fly To Fit outlet in 2023?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
1/01/2023 to 12/31/2023.
| 2023 | |
|---|---|
| Income | |
| Sales | 221,095.66 |
| Total Income | 221,095.66 |
| Cost of Goods Sold | |
| Cost of Goods Sold | 311.21 |
| Total Cost of Goods Sold | 311.21 |
| Gross Profit | 220,784.45 |
| Operating Expenses | |
| Advertising | 4,213.66 |
| Bank Service Charges | 8,221.10 |
| Business License & Fees | 643.68 |
| Dues & Subscriptions | 2,403.03 |
| Insurance | 3,119.87 |
| Meals & Entertainment | 102.20 |
| Other Expense | 42,150.27 |
| Payroll Tax Expense | 10,607.43 |
| Professional Fees | 252.70 |
| Wages & Salaries | 32,883.49 |
| Total Operating Expenses | 104,597.43 |
| Operating Income | 116,187.02 |
| Other Income / (Expense) | |
| Other Income | 416.15 |
| Vendor Refunds | 1,784.58 |
| Total Other Income / (Expense) | 2,200.73 |
| Net Income | 118,387.75 |
Estimated Royalty Fees: $11,054.78 Estimated Marketing Fund Fees: $2,210.96
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–41)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the net income for the company-owned outlet in 2023 was $118,387.75. This figure was calculated from January 1, 2023, to December 31, 2023. The FDD specifies that "Net Income" means the Income minus the Operating Expenses, essentially EBITDA. This is a key metric for understanding the profitability of the company-owned Fly To Fit location.
The financial performance representation includes various income and expense items that contribute to the net income. The total income (sales) for the company-owned outlet was $221,095.66, with a cost of goods sold of $311.21, resulting in a gross profit of $220,784.45. Operating expenses totaled $104,597.43, which included costs such as advertising ($4,213.66), bank service charges ($8,221.10), business licenses and fees ($643.68), insurance ($3,119.87), payroll tax expense ($10,607.43), and wages and salaries ($32,883.49). Other income, including vendor refunds, contributed an additional $2,200.73.
It is important to note that the FDD cautions prospective franchisees that these results are from a company-owned location and that individual results may vary. The document explicitly states, "Some outlets have sold and earned this amount. Your individual results may differ. There is no assurance that you'll sell or earn as much." This highlights the inherent risks and uncertainties in franchising, where factors such as location, management skills, and local market conditions can significantly impact financial performance. Prospective franchisees should carefully consider these factors and conduct their own due diligence before investing in a Fly To Fit franchise.
Fly To Fit also states that they do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, except for what is included in Item 19. If a prospective franchisee receives any other financial performance information or projections of future income, they should report it to Fly To Fit's management, the Federal Trade Commission, and the appropriate state regulatory agencies.