What was the total amount of distributions to members from 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, |
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 total distributions to members in 2023 was ($39,027,436), and distributions to former members totaled ($6,986,143). These distributions are part of the changes in the member's deficit during the year. The member's deficit started at ($23,843,149) on January 1, 2023, and ended at ($51,710,902) on December 31, 2023.
In addition to the distributions, other factors contributed to the change in the member's deficit. These include a net loss of ($13,663,363), a capital contribution of $1,059,487, a UAR (Unit Appreciation Rights) liability settled at Acquisition by Parent of $30,364,516, and Class C Units issued for celebrity endorsement valued at $385,186.
Prospective franchisees should be aware of these significant distributions and how they impact the company's overall financial health. Understanding the context of these distributions, along with other financial activities, is crucial for assessing the financial stability and future prospects of Stretch Zone.