What was the total amount of distributions to member and former member for Stretch Zone in 2023?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
use asset and the lease |
Statements of Changes in Member's Deficit
| Member's deficit, January 1, 2023 | $ (23,843,149) |
|---|---|
| Net loss | (13,663,363) |
| Capital contribution | 1,059,487 |
| UAR liability settled at Acquisition by Parent | 30,364,516 |
| Class C Units issued for celebrity endorsement | 385,186 |
| Distributions to member | (39,027,436) |
| Distributions to former member | (6,986,143) |
| Member's deficit, December 31, 2023 | (51,710,902) |
| Net loss | (2,678,666) |
| LTIP expense | 144,445 |
| Member's deficit, December 31, 2024 | $ (54,245,123) |
Statements of C
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, in 2023, distributions to members totaled $39,027,436, and distributions to former members totaled $6,986,143. This means that Stretch Zone distributed a significant amount of funds to its members and former members during that year.
For a prospective franchisee, this information provides insight into how Stretch Zone manages its finances and distributes profits or capital. High distributions could indicate strong profitability, but it's essential to consider the context.
It is important to note that these distributions are related to member deficits and overall financial activities of the company, as detailed in the provided financial statements. A potential franchisee should investigate the reasons behind these distributions and their implications for the company's long-term financial health.