What was the net loss for Spray Net at December 31, 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 an important indicator of the company's financial performance during that year. A net loss signifies that Spray Net's expenses exceeded its revenues, resulting in a negative profit.
For a prospective franchisee, this information is crucial for assessing the financial health and stability of Spray Net. While a single year's loss doesn't necessarily indicate long-term problems, it warrants further investigation. Potential franchisees should look at the trend over several years to understand if the loss is an isolated incident or part of a pattern. The FDD also shows net income (loss) for 2023 and 2022, which were $839,705 and ($690,286), respectively.
It would be prudent for prospective Spray Net franchisees to inquire about the reasons for the 2024 net loss. Understanding the factors that contributed to the loss, such as increased operating expenses or decreased revenues, can help franchisees evaluate the potential risks and opportunities associated with investing in the franchise. Additionally, franchisees may want to ask about Spray Net's strategies for improving profitability and ensuring future financial stability.