What was the depreciation expense reported for Stretch Zone in 2022?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
) |
Statements of Cash Flows
| Year Ended | |
|---|---|
| December 31, |
| 2023 | 2022 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net loss | $ (13,663,363) | $ (16,997,533) |
| Recon |
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 depreciation expense for 2022 was $6,531. This figure is part of the reconciliation of net loss to net cash provided by operating activities. Depreciation is a non-cash expense that reflects the reduction in value of an asset over time.
For a prospective Stretch Zone franchisee, understanding the depreciation expense can be helpful in analyzing the company's financial performance. It provides insight into the level of capital investment Stretch Zone has in its assets and how those assets are being utilized. While depreciation itself doesn't involve a direct cash outflow, it does impact the net income and, consequently, the overall financial health of the company.
It's important to note that this depreciation expense relates to Stretch Zone Franchising, LLC, and may not directly reflect the expenses a franchisee would incur at their individual location. Franchisees should focus on understanding their own potential depreciation expenses related to equipment and other assets they acquire for their specific Stretch Zone studio.