What was the total member's 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 member's equity as of December 31, 2023, was $11,794,510. The document also shows a "Due from Parent" balance of $(7,516,278) at that time, resulting in a total equity of $4,278,232. This indicates the accumulated ownership value of Bath Tune Up, reflecting the net assets attributable to its member(s). The "Due from Parent" represents the net amount owed between Bath Tune Up and its parent company, Home Franchise Concepts, LLC.
It's important to note that the member's equity can fluctuate due to several factors, including net income, allocations from the parent company, and advances to the parent company. For instance, the net income for the same period was $2,271,476, contributing to the overall member's equity. Additionally, allocations from the parent company amounted to $3,671,090, further impacting the equity. Conversely, advances to the parent company reduced the equity.
Prospective franchisees should understand that these figures reflect the financial relationship between Bath Tune Up and its parent company. Significant "Due from Parent" balances could indicate inter-company financing arrangements or allocations of expenses and revenues. Reviewing these financial statements and understanding the relationship between Bath Tune Up and its parent company is crucial for assessing the financial stability and performance of the franchise system.
It is also important to note that the financial statements are audited by an independent auditor, which provides an additional level of assurance regarding their accuracy and reliability. The auditor's report indicates that the financial statements present fairly the financial position of Bath Tune Up in accordance with accounting principles generally accepted in the United States of America.