What was the ending equity balance for Aira Fitness on 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 ending equity balance on December 31, 2024, was a deficit of $(4,257). This figure is derived from several factors, including 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 equity took a hit during 2024. While the beginning balance was a positive $29,335, the combination of net losses and equity distributions resulted in a negative ending balance. This could be a point of concern, as it reflects the financial performance and decisions of the company during that period.
It's important to note that equity contributions and distributions can be influenced by various factors, such as investments, dividends, or capital restructuring. The net loss of $(22,591) suggests that the company's expenses exceeded its revenues during the year. A prospective franchisee should investigate the reasons behind the net loss and equity distributions to understand the overall financial health and stability of Aira Fitness.
Franchisees should consider this information in the context of other financial statements and information provided in the FDD, such as the balance sheet and statement of cash flows, to gain a comprehensive understanding of Aira Fitness's financial position. Consulting with a financial advisor is recommended to assess the potential risks and rewards associated with investing in an Aira Fitness franchise.