What was the depreciation expense for Stretch Zone in the earlier year presented in the statement of cash flows?

According to Stretch Zone's 2025 Franchise Disclosure Document, the depreciation expense for the year 2022 was $6,531. This figure is part of the reconciliation of net loss to net cash provided by operating activities in the statement of cash flows. Depreciation expense is a non-cash expense that reflects the reduction in value of assets over time.

For a prospective Stretch Zone franchisee, understanding depreciation expense is important for assessing the overall financial health and profitability of the franchisor. While depreciation itself doesn't involve a direct cash outflow, it impacts the net income and, consequently, the retained earnings of the company. This can influence the franchisor's ability to invest in growth, support franchisees, and maintain the brand's competitive position.

Depreciation is a standard accounting practice, and the amount can vary depending on the company's asset base and depreciation methods used. Franchisees should look at this figure in conjunction with other financial statement items to get a comprehensive view of the franchisor's financial performance. Comparing depreciation expense over multiple years can also reveal trends in the company's capital investments and asset management strategies.