What was the total member's equity for Bft as of December 31, 2024?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Liabilities and Member's equity | ||
| Member's equity: | ||
| Member contribution | 48,542 | 51,612 |
| Advances to Member, net (Note 7) | (155,034) | (11,690) |
| Retained earnings (accumulated deficit) | 145,633 | (4,476) |
| Total member's equity | 39,141 | 35,446 |
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the total member's equity as of December 31, 2024, was $39,141. This figure represents the net worth of the company attributable to its member or owner. In comparison, the total member's equity as of December 31, 2023, was $35,446.
The member's equity is calculated by considering several components. These include member contributions, which amounted to $48,542 as of December 31, 2024, and $51,612 as of December 31, 2023. There are also advances to the member, net of $155,034 as of December 31, 2024, and $11,690 as of December 31, 2023. Retained earnings, which represent the accumulated profits or losses, were $145,633 as of December 31, 2024, and a deficit of $4,476 as of December 31, 2023.
It's important to note that the advances to the member are recorded as a reduction to member's equity because the member has no plan to contribute back such amounts to the company in the foreseeable future. This accounting treatment can significantly impact the overall member's equity and should be carefully considered by potential franchisees. The interplay between member contributions, advances, and retained earnings ultimately determines the total member's equity, which provides a snapshot of the company's financial health and ownership value.