What were the total liabilities and 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 total liabilities and member's equity for the company in 2023 was $358,257. This figure represents the sum of all the company's debts and the owner's stake in the company at the end of the fiscal year. This number is derived from the balance sheet, a standard financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time.
Specifically, the liabilities section reflects what Bevaris Alliance owes to others, including accounts payable, credit card balances, income taxes, insurance, amounts due to related parties, and the system marketing reserve fund. The member's equity represents the owner's investment in the company, including initial contributions and retained earnings. The balance sheet equation (Assets = Liabilities + Equity) must always balance, ensuring that all resources are accounted for.
For a prospective franchisee, understanding the liabilities and equity of Bevaris Alliance is crucial for assessing the financial health and stability of the franchisor. A high level of liabilities compared to equity could indicate financial risk, while a strong equity position suggests a more stable and sustainable business model. Reviewing these figures over time, as the FDD provides for 2022 and 2023, can reveal trends in the company's financial performance and capitalization.