What was the net income (loss) for Spray Net in 2024?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ty | | 580,993 | | 375,584 | | 560,772 | | Deferred income taxes | | _ | | - | | _ | | Customer deposits - convention | | _ | | _ | | 35,790 | | Brand fund liability | _ | | _ | | _ | 80,280 | | Total Current Liabilities | | 632,929 | _ | 452,689 | _ | 1,123,533 | | Long Term Liabilities | | | | | | | | Contract Liability, net of current | | 3,291,079 | $\equiv$ | 2,758,841 | | 2,795,050 | | Stockholder's (Deficit) | | | | | | | | Common stock | | 38 | | 38 | | 38 | | Equity (Deficit) | | (777,761) | | 22,784 | | (816,921) | | Stockholder's (Deficit) | = | (777,723) | _ | 22,822 | = | (816,883) | | Total Liabilities and Stockholder's (Deficit) | $ 3 | 3,146,285 | $ : | 3,234,352 | $ | 3,101,700 |
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Franchise revenues | $ 516,443 | $ |
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the company experienced a net loss of $800,545 in 2024. This figure is derived from the statement of operations included in the financial statements. It's important to note that this loss occurred despite Spray Net generating total revenues of $2,863,931 during the same period. The loss is calculated after deducting operating expenses of $3,701,092 and factoring in an income tax benefit of $36,616.
For a prospective franchisee, this information is crucial as it provides insight into the financial health and performance of Spray Net. While revenue generation is important, the net income (or loss) indicates the actual profitability of the company's operations. A net loss, as seen here, could raise concerns about the company's ability to sustain its operations and support its franchisees in the long term. However, it is also important to consider the context of this loss, such as any significant investments or one-time expenses that may have impacted profitability in 2024.
It is also worth noting that Spray Net's net income (loss) has fluctuated significantly over the past three years. In 2023, the company reported a net income of $839,705, while in 2022, it experienced a net loss of $690,286. This volatility in financial performance could be a cause for concern for potential franchisees, as it suggests that the company's profitability is subject to change. Therefore, prospective franchisees should carefully evaluate the factors contributing to these fluctuations and assess their potential impact on their own franchise operations.
In addition to the net income (loss), prospective Spray Net franchisees should also pay close attention to the company's revenue streams and expense structure. In 2024, the company's primary sources of revenue were local and digital marketing revenues ($1,490,118), franchise revenues ($516,443), royalties ($446,767), training revenues ($210,000), and other revenues ($200,603). The company's operating expenses totaled $3,701,092. By analyzing these figures, prospective franchisees can gain a better understanding of the company's business model and identify potential areas for improvement or cost savings.