What was the total equity for Bath Tune Up as of December 31, 2023?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | Net income | $ | 1,588,884 | $ | 2,271,476 | |
HFC KTU LLC (dba Kitchen Tune-Up and Bath Tune-Up) Statements of Member's Equity
| Member's equity | Due from Parent | Total Equity | |
|---|---|---|---|
| Balances at December 31, 2022 | $ 9,523,034 | $ (6,119,658) $ | 3,403,376 |
| Advances to Parent | — | (5,067,710) | (5,067,710) |
| Allocations from Parent | — | 3,671,090 | 3,671,090 |
| Net income | 2,271,476 | — | 2,271,476 |
| Balances at December 31, 2023 | 11,794,510 | (7,516,278) | 4,278,232 |
| Advances to Parent | — | (5,480,873) | (5,480,873) |
| Alloc |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the total equity as of December 31, 2023, was $4,278,232. This figure represents the sum of the member's equity, which was $11,794,510, and the due from parent, which was $(7,516,278).
Equity is a crucial metric for assessing the financial health of Bath Tune Up. It indicates the ownership value in the company after deducting liabilities from assets. A positive equity balance generally suggests financial stability, while a negative balance could raise concerns about the company's solvency.
For a prospective Bath Tune Up franchisee, understanding the franchisor's equity is essential. It provides insight into the financial resources available to support the franchise system. A strong equity position can enable the franchisor to invest in training, marketing, and other resources that benefit franchisees. However, it is important to also consider the 'Due from Parent' figure, as this represents money owed by the parent company, which could impact the immediate availability of those funds.
It is important to note that these figures are part of a larger set of financial statements, and a comprehensive analysis should consider all aspects of the franchisor's financial condition. Reviewing the complete audited financial statements and consulting with a financial advisor is recommended for any potential franchisee.