What was the total stockholder's equity (deficit) for Afuri Ramen Dumpling in the most recent year presented?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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SKY ACCOUNTANCY CORPORATION
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholder of Afuri Franchise, Inc.
Opinion
We have audited the accompanying financial statements of Afuri Franchise, Inc. (the "Company"), which comprise the balance sheet as of December 31, 2023, and the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the balance sheet as of December 31, 2023, shows a total stockholder's equity deficit of $466,538. This means that the company's liabilities exceeded its assets by this amount at the end of 2023. This figure is derived from the audited financial statements included in the FDD. An independent auditor, Sky Accountancy Corporation, examined these financials.
The stockholder's equity (deficit) is a critical indicator of the financial health of Afuri Ramen Dumpling. A deficit suggests that the company has accumulated losses over time, which could impact its ability to meet its financial obligations. For a prospective franchisee, this could signal higher financial risk, as the franchisor's financial instability could affect the support and services they provide.
It is important for potential franchisees to carefully review the complete financial statements and notes within Item 23 of the FDD. Understanding the reasons behind the deficit, such as operating losses or significant liabilities, is essential. Additionally, franchisees should inquire about the franchisor's plans to address the deficit and improve its financial position. Consulting with a financial advisor is recommended to fully assess the implications of this financial situation.