What was the operating income for the company-owned Fly To Fit outlet in 2023?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 |
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 operating income for the company-owned outlet in 2023 was $116,187.02. This figure is calculated by subtracting the total operating expenses of $104,597.43 from the gross profit of $220,784.45. The document specifies that these financial results are based on the company-owned outlet's performance from January 1, 2023, to December 31, 2023.
For a prospective Fly To Fit franchisee, this information provides insight into the potential profitability of a Fly To Fit outlet. Operating income, in this context, represents the earnings before considering other income/expenses, taxes, and interest. It's a key indicator of the core operational efficiency of the business. However, Fly To Fit cautions that individual results may vary, and there is no assurance that a franchisee will achieve the same level of income.
It is important to note that these figures are based on a single company-owned outlet, and the performance of franchised locations may differ due to various factors such as location, management skills, and local market conditions. Fly To Fit also clarifies that they do not make any representations about a franchisee's future financial performance, except for the data included in Item 19 of the FDD. Prospective franchisees should carefully review the entire Item 19 and consider consulting with a financial advisor to assess the potential risks and rewards of investing in a Fly To Fit franchise.