What was the total income reported 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 | |
| (A) Other G&A | 1,203,375.32 |
| Advertising & Marketing | 489,239.30 |
| Bank Charges | 14,389.22 |
| Commission - MIA | 1,618.74 |
| Depreciation Expense | 490.37 |
| Dues & Subscriptions | 15,989.05 |
| FAC Expenses | 348.66 |
| Insurance | 26,035.04 |
| Interest Expense | 1,092,793.88 |
| Legal & Professional Fees | 87,896.24 |
| Meals and Entertainment | 1,948.18 |
| Office Equipment | 6,643.51 |
| Office Expenses | 7,328.32 |
| Office Supplies | 8,712.02 |
| Other General and Admin Expense | -16,568.99 |
| Payroll Expenses | 24,626.14 |
| Payroll Service | 3,671.34 |
| Payroll Taxes | 75,603.85 |
| PEG Expenses | 27,967.68 |
| Real Estate Discovery | 7,500.00 |
| Reimbursable Zee Expense | 310,160.64 |
| Rent or Lease | 111,828.59 |
| Repair & Maintenance | 674.93 |
| Shipping, Delivery and Postage | 3,495.98 |
| Taxes & Licenses | 2,225.00 |
| Travel | 1,362.25 |
| Uncategorized Expense | 1,937.70 |
| Utilities | 2,950.79 |
| Website | 79,917.85 |
| Total Expense | 3,594,161.60 |
| Net Ordinary Income | -632,445.87 |
| Net Income | -632,445.87 |
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 company's Profit and Loss statement shows financial performance for the period of January through March 2025. During this period, Stretch Zone reported a total income of $2,993,735.28. This income is derived from several sources, including billable expense income, Club Ready royalties, franchise fees, media fund contributions, rebate income, SCORE audit program revenue, store FAD revenue, technology fees, and training revenue.
Breaking down the income sources, Club Ready royalties contributed $1,416,631.78, while franchise fees amounted to $445,863.26. The media fund generated $472,464.24, and technology fees accounted for $407,380.00. Training SZ brought in $131,132.07, and Store FAD Revenue added $73,553.00. Other income sources include $47,125.00 from the SCORE Audit Program and $840.00 from Rebate Income, with a deduction of $1,254.07 for Billable Expense Income.
It is important to note that while Stretch Zone's total income for this period was approximately $2.99 million, the company also incurred significant expenses. The cost of goods sold was $32,019.55, resulting in a gross profit of $2,961,715.73. However, total expenses amounted to $3,594,161.60, leading to a net ordinary income and net income of -$632,445.87. This indicates that Stretch Zone operated at a loss during the first quarter of 2025, with expenses exceeding income by over $600,000.