What was the ending balance of Aira Fitness's shareholders' equity as of 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) |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the ending balance of the company's shareholders' equity as of December 31, 2024, was a negative $4,257. This figure is derived from a beginning balance of $29,335, a net loss of $22,591 for the period ending December 31, 2024, and equity distributions of $11,000.
For a prospective Aira Fitness franchisee, this indicates that the company's liabilities exceeded its assets at the close of 2024. This could be a cause for concern, as it suggests potential financial instability. It's important to note that this is just a snapshot in time, and the company's financial situation could have changed since then.
It is common for new franchise systems to have low or negative equity in their early years as they invest in building the brand and supporting franchisees. However, prospective franchisees should carefully evaluate Aira Fitness's financial statements and ask the franchisor about the reasons for the negative equity and its plans to improve its financial position. Understanding the franchisor's financial health is crucial for assessing the overall risk of investing in an Aira Fitness franchise.