What was the total members' equity for Beggars Pizza in 2023?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
nal control related matters that we identified during the audit.
March 22, 2024
Beggars Pizza Franchise, LLC Balance Sheet December 31,
| Assets | 2023 | 2022 |
|---|---|---|
| Current assets: Cash Royalty receivables, net of allowance for credit losses of $10,000 in 2023 and 2022 | $ 223,946 120,986 | $ 174,543 115,531 |
| Other assets | $ 85,551 | $ - |
| Total assets | 430,483 | 290,074 |
| Liabilities and Members' Equity | ||
| Current liabilities: Accounts payable Accrued state taxes Deferred franchise fees | $ 41,196 690 25,000 | $ 15,371 35,669 37,500 |
| Tot |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the total members' equity for the company in 2023 was $363,597. This figure represents the ownership stake of the members in the company, calculated as the difference between the company's total assets and total liabilities. In 2023, Beggars Pizza's total assets amounted to $430,483, while its total liabilities were $66,886.
For a prospective franchisee, understanding the members' equity can provide insights into the financial stability and overall health of Beggars Pizza. A higher members' equity generally indicates a stronger financial position, as it suggests that the company has a significant ownership stake relative to its debt. This can be reassuring for franchisees who are considering investing in the brand, as it implies that Beggars Pizza is well-capitalized and has a solid foundation for future growth.
It's also worth noting that the members' equity can fluctuate from year to year due to various factors, such as changes in profitability, investments, and distributions to members. In the case of Beggars Pizza, the members' equity increased from $201,534 in 2022 to $363,597 in 2023, indicating a positive trend in the company's financial performance. This information, combined with other financial metrics and qualitative factors, can help potential franchisees make an informed decision about whether to invest in a Beggars Pizza franchise.
Prospective franchisees should review the full financial statements and consult with a financial advisor to fully understand the implications of the members' equity and other financial data. Understanding the franchisor's financial health is a critical part of the due diligence process.