What was the net value of property and equipment for Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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Sky Accountancy Comperation
Tonance, California
April 7, 2023
| ABBETS | ||
|---|---|---|
| Current assets | ||
| Cash and cash equivalents | 8 | 938,851 |
| Accounts receivable, net of allowance | 46,700 | |
| Due from affiliates | 68,488 | |
| Prepaid expenses | 603 | |
| Total current assets | 1,054,642 | |
| Property and equipment | ||
| Machinery and equipment | 8,779 | |
| Less: accumulated depreciation | (3,562) | |
| Net property and equipment | 5,217 | |
| Other assets | ||
| Intangible assets | 97,492 | |
| Deferred income tax | 24,000 | |
| Total other assets | 121,492 |
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the net property and equipment was valued at $5,217. This figure is calculated by taking the machinery and equipment value of $8,779 and subtracting the accumulated depreciation of $3,562.
For a prospective Afuri Ramen Dumpling franchisee, this indicates the level of investment the company itself has in its own property and equipment. It is important to note that this value reflects the company's assets and not the potential investment a new franchisee would need to make in their own restaurant location. Franchisees should anticipate significant additional costs for build-out, equipment, and initial inventory to establish their own Afuri Ramen Dumpling franchise.
Understanding the franchisor's asset values can provide insight into their financial health and investment strategy. However, prospective franchisees should focus more on the estimated initial investment outlined in Item 7 of the FDD, as well as ongoing costs and fees, to accurately assess their own financial obligations and potential profitability.