What was the balance for Bombs Away as of December 31, 2023?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
BOMBS AWAY FRANCHISING LLC STATEMENT OF SHAREHOLDERS' EQUITY DECEMBER 31, 2023
| Balance | Changes | Total | |
|---|---|---|---|
| Balance, December 31, 2022 | $ 50,000 | $ - | $ 50,000 |
| Net Income For The Period Ended December 31, 2023 | - | (27,161) | (27,161) |
| Equity Contributions (Distributions) | - | (91,721) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the balance as of December 31, 2023, was $"(68,882)". This figure is derived from an initial balance on December 31, 2022, of $50,000, with changes during the period ending December 31, 2023, totaling $"(118,882)".
Specifically, the changes include a net income loss for the period ended December 31, 2023, of $"(27,161)" and equity contributions/distributions of $"(91,721)". The combination of the initial balance and these changes results in the final balance of $"(68,882)".
For a prospective Bombs Away franchisee, this indicates that the company had a net negative balance at the end of 2023. This information is crucial for potential franchisees to consider, as it provides insight into the financial health and stability of the franchisor. It is advisable for potential franchisees to further investigate the reasons behind the net loss and equity distributions to fully understand the financial standing of Bombs Away.