What was the beginning equity balance for Aira Fitness at the start of the period ending December 31, 2024?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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AIRA FITNESS FRANCHISING LLC STATEMENT OF SHAREHOLDERS' EQUITY AS OF DECEMBER 31, 2024 & DECEMBER 31, 2023 & DECEMBER 31, 2022
| - | ing Equity alance | Yearly Changes | Total | ||
|---|---|---|---|---|---|
| Beginning Balance | $ | 6,963 | $ | - | $ 6,963 |
| Net Income for the period ending December 31, 2022 | - | (1,000) | (1,000) | ||
| Equity Contributions (Distributions) | - | (3,963) | (3,963) | ||
| Balance, December 31, 2022 | $ | 6,963 | $ | (4,963) | $ 2,000 |
| - | ing Equity alance | C | Yearly Changes | Total | |
| Beginning Balance | $ | 2,000 | $ | - | $ 2,000 |
| Net Income for the period ending December 31, 2023 | - | 62,388 | 62,388 | ||
| Equity Contributions (Distributions) | - | (35,054) | (35,054) | ||
| Balance, December 31, 2023 | $ Opening Equity Balance | 2,000 | $ Yearly Changes | 27,334 | $ 29,335 Total |
| Beginning Balance | $ | 29,335 | $ | - | $ 29,335 |
| Net Income for the period ending December 31, 2024 | - | (22,591) | (22,591) | ||
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the beginning equity balance at the start of the period ending December 31, 2024, was $29,335. This figure represents the net worth of Aira Fitness at the beginning of that fiscal year, which is the sum of their assets minus their liabilities. It serves as the baseline for calculating changes in equity throughout the year.
Throughout the year ending December 31, 2024, Aira Fitness experienced a net loss of $22,591 and equity distributions of $11,000. These financial activities decreased the equity balance. The net loss indicates that the company's expenses exceeded its revenues during the period, while the equity distributions represent payments made to the owners or shareholders, further reducing the company's equity.
At the end of the period on December 31, 2024, Aira Fitness's equity balance was $-4,257. This indicates that the company's liabilities exceeded its assets at the end of the year. For a prospective franchisee, this financial information provides insight into the financial stability and performance of Aira Fitness. A negative equity balance could be a red flag, suggesting potential financial challenges within the company.