What were the total revenues for Stretch Zone in 2022?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ 8,159,875 |
|---|
Statements of Operations
Year Ended December 31,
| December 31, | |||
|---|---|---|---|
| 2023 | 2022 | ||
| Revenues: | |||
| Royalties | $ 6,249,900 | $ 4,723,154 | |
| Franchise and ADA fees | 1,563,002 | 911,918 | |
| Media fund | 2,063,598 | 1,497,709 | |
| Equipment | 339,535 | 364,423 | |
| Training | 436,917 | 352,917 | |
| Technology | 1,098,504 | 611,550 | |
| Miscellaneous | 140,480 | 128,862 | |
| Total revenues | 11,891,936 | 8,590,533 | |
| Operating expenses | 9,172,888 | 7,690,543 | |
| Other expense: | |||
| UAR expense | (12,466,993) | (17,897,523) | |
| Interest expense | (3,915 |
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 revenues for the company in 2022 were $8,590,533. This figure is derived from several revenue streams, including royalties, franchise and ADA fees, media fund contributions, equipment sales, training programs, technology services, and miscellaneous income.
For a prospective Stretch Zone franchisee, understanding the breakdown of these revenue streams can offer insights into the company's financial health and the relative importance of each area. For example, the largest portion of revenue comes from royalties, indicating the ongoing revenue generated from existing franchise locations. Franchise and ADA fees represent initial fees paid by new franchisees.
The media fund contributions suggest a commitment to marketing and advertising efforts, while revenue from equipment, training, and technology highlight additional services and products offered to franchisees. Monitoring these revenue streams over time can help franchisees assess the stability and growth potential of the Stretch Zone franchise system. It's also important to note that while total revenues are significant, the company also reported a net loss for the same period, indicating that expenses exceeded revenues.