What was the net income (loss) for Spray Net before taxes 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 before taxes of $837,161 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.
For a prospective franchisee, this information is crucial as it provides insight into the financial performance of Spray Net. A net loss before taxes suggests that the company's operating expenses exceeded its revenues. While revenue figures show the brand is generating income, the loss indicates potential challenges in managing costs or other factors impacting profitability at the corporate level.
It is also useful to compare Spray Net's 2024 performance with previous years. In 2023, the company had a net income before taxes of $933,223, while in 2022, it reported a net loss before taxes of $729,011. This historical data can help a potential franchisee understand the volatility and trends in Spray Net's financial performance. The significant swing from a profit in 2023 to a loss in 2024 warrants further investigation to understand the underlying causes and whether this trend is likely to continue.
Given this information, a prospective franchisee should inquire about the reasons for the net loss in 2024 and what measures Spray Net is taking to improve its profitability. Understanding the factors contributing to the loss, such as increased operating expenses or decreased revenue streams, is essential for assessing the financial stability and future prospects of the franchise system.