What was the total cost of goods sold for a Fly To Fit franchise 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 total cost of goods sold for the company-owned outlet in 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 the company-owned outlet, and the FDD explicitly states that individual results may vary. There is no assurance that a franchisee will achieve the same level of sales or earnings.
For a prospective Fly To Fit franchisee, understanding the cost of goods sold is crucial for projecting potential profitability. It directly impacts the gross profit, which is the revenue remaining after deducting the cost of goods sold. In 2023, the company-owned outlet had a gross profit of $220,784.45. By carefully managing the cost of goods sold, a franchisee can improve their gross profit margin and overall financial performance.
It is also important to consider the notes provided in the FDD, particularly note 6, which emphasizes that individual results may differ and there is no guarantee of similar performance. Fly To Fit also states that written substantiation of the information contained in Item 19 will be made available to prospective franchisees upon reasonable request. Therefore, it is advisable for potential franchisees to request and review this substantiation to gain a deeper understanding of the financial data and its underlying assumptions.