What was the total member's equity for Bath Tune Up as of December 31, 2022?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
on sale of equipment | 2,862 | | Total other income | 86,914 | | Net earnings | $ 4,223,532 | The accompanying notes are an integral part of the financial statements.
Statement of Equity
| Member's Equity | Due from Parent | Equity | |
|---|---|---|---|
| Balance at January 1, |
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 member's equity as of December 31, 2022, was $9,523,034, while the total equity was $3,403,376. There was also a due from parent of $(6,119,658). It is important to note that Bath Tune-Up is under HFC KTU LLC, which also operates Kitchen Tune-Up. HFC KTU LLC is a wholly-owned subsidiary of Home Franchise Concepts, LLC.
Member's equity represents the ownership interest of the members in Bath Tune Up. It is calculated as the difference between the company's assets and its liabilities. A positive member's equity indicates that the company has more assets than liabilities, while a negative member's equity indicates the opposite. In this case, Bath Tune Up had positive member's equity as of December 31, 2022.
The "Due from Parent" reflects the transactions between Bath Tune Up and its parent company, Home Franchise Concepts, LLC. The negative value indicates that Bath Tune Up owes money to its parent company as of that date. Prospective franchisees should investigate the nature of these transactions to understand the financial relationship between Bath Tune Up and its parent company and how this might affect the franchise's financial performance.
Understanding these figures is crucial for potential franchisees as it provides insight into the financial stability and structure of Bath Tune Up. Reviewing the complete financial statements and notes, including those related to transactions with the parent company, will offer a more comprehensive understanding of the franchise's financial health.