What was the members' equity reported for Beggars Pizza in 2021?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
ment of Income | 4 | | | | Statement of Members' Equity | 5 | | | | Statement of Cash Flows | 6 | | | | Notes to the Financial Statements | 7 - 10 | | |
INDEPENDENT AUDITOR'S REPORT
Members Beggars Pizza Franchise, LLC Blue Island, Illinois
Opinion
We have audited the accompanying financial statements of Beggars Pizza Franchise, LLC, which comprise the balance sheet as of December 31, 2022 and 2021, and the related statements of income, members' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beggars Pizza Franchise, LLC as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Beggars Pizza Franchise, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Restatement to Prior Period Financial Statements
As disclosed in Note 5, the Company elected to pay the Illinois Pass-Through Entity Tax ("PTE Tax") on behalf of the members. The 2021 financial statements were restated to reflect the PTE Tax payment totaling $35,586 as a distribution to members rather than miscellaneous expense as previously reported.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statement
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Beggars Pizza includes an independent auditor's report that references the Beggars Pizza Franchise, LLC balance sheet as of December 31, 2022 and 2021. The auditor's opinion states that the financial statements fairly represent the financial position of Beggars Pizza Franchise, LLC as of those dates. The report also mentions that the 2021 financial statements were restated to reflect a payment of $35,586 for the Illinois Pass-Through Entity Tax as a distribution to members, rather than as a miscellaneous expense.
While the auditor's report confirms that Beggars Pizza has financial statements that include members' equity for 2021, the specific amount of members' equity is not disclosed in this excerpt. The excerpt focuses on the auditor's opinion and the restatement of the 2021 financials due to the Illinois Pass-Through Entity Tax. The excerpt also describes the responsibilities of Beggars Pizza's management in preparing the financial statements, including evaluating the company's ability to continue as a going concern.
To determine the members' equity for Beggars Pizza in 2021, a prospective franchisee should review the complete audited financial statements, specifically the balance sheet and the statement of members' equity. These statements would provide the actual figures for members' equity, offering a clearer picture of the company's financial standing. Understanding the trend in members' equity over several years can also give insights into the company's profitability and financial management.