What was the member's deficit for Amorino in 2023?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
ernance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Atlanta, Georgia
BALANCE SHEETS
CPUSA LLC
(A Wholly-Owned Subsidiary of Amorino USA Corp.)
| 2024 | December 31, 2023 | 2022 | ||
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS Cash and cash equivalents Accounts receivable Accounts receivable from related partyNote B Prepaid expenses TOTAL CURRENT ASSETS TOTAL ASSETS | $ 136,842 7,397 7,140 -0- 151,379 $ 151,379 | $ $ | 41,417 208 7,140 2,167 50,932 50,932 | 84,565$ -0- 35,375 -0- 119,940 $ 119,940 |
| LIABILITIES AND MEMBER'S DEFICIT | ||||
| CURRENT LIABILITIES Accounts payable Accounts payable to related partyNote B Accrued expenses Deferred revenue TOTAL CURRENT LIABILITIES | $ 4,280 75,887 10,211 34,466 124,844 | $ | 2,690 72,905 -0 |
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the member's deficit for the company in 2023 was ($142,465). This figure represents the accumulated losses of CPUSA LLC, a wholly-owned subsidiary of Amorino USA Corp., as of December 31, 2023. A deficit in member's equity indicates that the company's liabilities and obligations exceed its assets, reflecting a negative net worth.
For a prospective Amorino franchisee, this information is crucial as it provides insight into the financial health and stability of the franchisor. A significant deficit may raise concerns about the franchisor's ability to support its franchisees, invest in the brand, or meet its own financial obligations. While the FDD notes that the Parent company is committed to providing additional financing if needed, potential franchisees should carefully evaluate the implications of this deficit.
It's important to note that the company's operations are closely tied to its parent and affiliate, which can influence its financial performance. The FDD also mentions that certain franchisor obligations are borne by the affiliate without being charged to the company, which could affect the company's reported financial results. Prospective franchisees should consider these related-party transactions and their potential impact on the overall financial picture of Amorino.
Given this information, it would be prudent for potential franchisees to seek clarification from Amorino regarding the strategies in place to address the member's deficit and ensure the long-term financial viability of the franchise system. Understanding the franchisor's plan for managing its financial obligations and supporting its franchisees is essential for making an informed investment decision.