What was the total cost of goods sold for the company-owned Fly To Fit outlet during 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 total cost of goods sold for the company-owned outlet from January 1, 2023, to December 31, 2023, was $311.21. This figure represents the direct costs attributable to the production of the goods or services that Fly To Fit sells. It's important to note that this data is based on the performance of a single company-owned outlet and may not be representative of future franchise performance. Prospective franchisees should consider this information as a reference point, but understand that their individual results may vary.
The FDD emphasizes that the provided financial performance representations are historical and not projections of future performance. Fly To Fit also states that the company-owned location does not differ substantially from future franchise-owned locations. However, the document explicitly states that there is no assurance that franchisees will achieve similar sales or earnings. This highlights the inherent risks and uncertainties associated with any new business venture.
It is standard practice for franchisors to include financial performance representations in their FDDs, but the FTC's Franchise Rule mandates that there must be a reasonable basis for the information provided. Fly To Fit has included data from its company-owned outlet, offering potential franchisees some insight into possible financial outcomes. However, prospective franchisees are encouraged to conduct their own due diligence, including market research and financial planning, to assess the viability of a Fly To Fit franchise in their specific location and circumstances.