What was the member's equity for Bevaris Alliance in 2023?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| ASSETS | ||
|---|---|---|
| 2023 | 2022 | |
| CURRENT ASSETS: | ||
| Cash (Notes 2,12) | $ 259,204 | ¢ 256 474 |
| Accounts receivable | $ 256,474 | |
| 5,404 | 29,829 | |
| Prepaid expenses | 31,999 | |
| TOTAL CURRENT ASSETS | 296,607 | 286,303 |
| ORGANIZATION COSTS | 953 | 953 |
| INTELLECTUAL PROPERTY (NOTE 3) | 4,466 | 4,466 |
| SECURITY DEPOSIT | 3,714 | · |
| 5,714 | 1,360 | |
| DEFERRED FRANCHISE DEVELOPMENT | 52,517 | 67,172 |
| COSTS - NET (NOTE 4) | ||
| TOTAL ASSETS | $ 358,257 | $ 360,254 |
| LIABILITIES AND MEMBER' | S EQUITY | |
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 29,075 | $ 25,463 |
| Credit card payable (Note 5) | 5,997 | 2,924 |
| Income taxes payable (Note 2) | 1,985 | |
| Insurance payable | 25,927 | 1,500 |
| System marketing reserve fund (Note 7) | • | 70 220 |
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the member's equity for 2023 was $112,862. This figure represents the ownership stake in the company held by its member after deducting all liabilities from its assets. In comparison, the member's equity in 2022 was $170,724, indicating a decrease in equity from 2022 to 2023.
For a prospective Bevaris Alliance franchisee, this information provides insight into the financial structure and stability of the franchisor. A higher member's equity generally suggests a stronger financial position. The decrease in member's equity from 2022 to 2023 could be due to various factors, such as increased expenses, investments in the franchise system, or distributions to the member. It is important to note that the member's equity is just one aspect of the overall financial health of Bevaris Alliance.
It is advisable for potential franchisees to review the complete financial statements and consult with a financial advisor to fully understand the implications of the member's equity and other financial metrics. Understanding the franchisor's financial position can help franchisees assess the level of support and resources Bevaris Alliance can provide, as well as the potential risks and rewards associated with investing in the franchise.