What was the total member's equity for Bevaris Alliance in 2022?
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 member's equity for the company in 2022 was $170,724. This figure represents the ownership stake of the member in the company, calculated as the difference between the company's assets and liabilities at the end of the year. Member's equity is a key indicator of the financial health and stability of a limited liability company like Bevaris Alliance. It reflects the accumulated earnings and investments made into the business over time. A higher member's equity generally indicates a stronger financial position.
For a prospective franchisee, understanding the member's equity is crucial as it provides insight into the financial foundation of Bevaris Alliance. A healthy member's equity suggests that the company has sufficient capital to support its operations and growth, which can translate into better support and resources for franchisees. Conversely, a low or declining member's equity might raise concerns about the company's ability to invest in the franchise system and provide adequate assistance to its franchisees.
It's important to note that member's equity is just one aspect of the overall financial picture. A prospective franchisee should also consider other factors such as revenue, expenses, and cash flow to get a comprehensive understanding of Bevaris Alliance's financial performance. Additionally, comparing the member's equity to that of other similar franchise systems can provide valuable context and help assess the relative financial strength of Bevaris Alliance.