What was the total amount of current liabilities for Beauty Bungalows in 2023?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
identified during the audits.
Troy, MI March 1, 2024
Beauty Bungalows Franchising, LLC BALANCE SHEET
For the Year Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| ASSETS | ||
| Current assets: | $ 115,727 | $ 124,233 |
| Cash | ||
| Total current assets | 115,727 | 124,233 |
| Non-current assets: | ||
| Deferred franchise acquisition costs | $ 115,783 | $ - |
| Total current assets | 115,783 | - |
| Total assets | $ 231,510 | $ 124,233 |
| LIABILITIES AND MEMBERS' EQUITY | ||
| Current liabilities | ||
| Deferred revenue | $ 37,010 | $ - |
| Noncurrent liabilities | ||
| Deferred revenue, noncurrent portion | 177 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the company's total current liabilities for 2023 were $37,010. This figure represents the short-term financial obligations of Beauty Bungalows Franchising, LLC, that are expected to be settled within one year.
For a prospective franchisee, understanding the franchisor's liabilities is crucial as it provides insight into the financial stability and health of the company. A high level of current liabilities relative to assets could indicate potential financial strain, while a lower level might suggest better financial management.
The current liabilities consist of deferred revenue. Deferred revenue represents payments Beauty Bungalows has received for services or products that have not yet been delivered or earned. This liability will be recognized as revenue in the future when the obligations are fulfilled. Reviewing the financial statements and understanding the nature of liabilities can help potential franchisees assess the financial risk and stability of investing in a Beauty Bungalows franchise.