What was the reported cost of goods sold for Stretch Zone from January to March 25?
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 | 2,961,715.73 |
| Expense |
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. A lower cost of goods sold relative to revenue results in a higher gross profit, which can then be used to cover operating expenses and generate net income. Monitoring this figure over time can help franchisees identify trends and potential areas for cost optimization.
It's important to note that this figure represents Stretch Zone Franchising, LLC's cost of goods sold, and not necessarily the costs that an individual franchisee will incur. Franchisees should develop their own projections based on their specific circumstances, including location, sales volume, and operational efficiencies. Reviewing these figures in the FDD can provide a benchmark for comparison.