What was the total amount of distributions to members and former members 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, |
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.
These distributions are important for prospective franchisees to consider as they provide insight into how Stretch Zone manages its finances and shares profits with its members. High distributions could indicate a profitable business model, but it's also crucial to assess the company's overall financial health and sustainability.
It is important to note that these distributions are separate from the member's deficit, which was $(51,710,902) as of December 31, 2023. Reviewing these figures in the context of Stretch Zone's complete financial statements will give potential franchisees a clearer picture of the company's financial performance and stability.