What was the cost of goods sold for Stretch Zone from January through March 2025?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Jan - Mar 25 | |
|---|---|
| Ordinary Income/Expense | |
| Income Billable Expense Income Club Ready - Royalties | -1,254.07 1,416,631.78 |
| Franchise Fee | 445,863.26 |
| Media Fund | 472,464.24 |
| Rebate Income | 840.00 |
| SCORE Audit Program | 47,125.00 |
| Store FAD Revenue | 73,553.00 |
| Technology Fee | 407,380.00 |
| Training SZ | 131,132.07 |
| Total Income | 2,993,735.28 |
| Cost of Goods Sold | 32,019.55 |
| Gross Profit |
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the cost of goods sold from January through March 2025 was $32,019.55. This figure represents the direct costs attributable to the production and sale of goods or services by Stretch Zone during this period.
For a prospective franchisee, understanding the cost of goods sold is crucial as it directly impacts the gross profit and overall profitability of the business. By subtracting the cost of goods sold from total income, one can determine the gross profit, which is a key indicator of financial performance. In this case, Stretch Zone's gross profit can be calculated by subtracting the $32,019.55 cost of goods sold from the total income of $2,993,735.28.
It's important to note that this figure represents the cost of goods sold at the corporate level for Stretch Zone Franchising, LLC, and may not directly reflect the costs that an individual franchisee will incur. Franchisees should carefully analyze their own potential costs of goods sold, which may include items such as supplies, inventory, and other direct expenses related to providing Stretch Zone's services. Franchisees should also consider factors such as location, market conditions, and operational efficiency, which can all impact the cost of goods sold and overall profitability.