What was the total amount of equity contributions or distributions for Bombs Away Franchising LLC in 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 total amount of equity contributions or distributions for the company in 2023 was a negative $91,721. This figure is derived from the Statement of Shareholders' Equity, which tracks changes in the ownership value of the company.
The negative value indicates that Bombs Away distributed more equity than it received in contributions during the year. This could be due to various factors, such as dividends paid out to shareholders or a return of capital. It is important to note that this distribution impacts the overall equity balance of the company, decreasing it from $50,000 at the beginning of the year to $-68,882 by the end of 2023.
A prospective franchisee should consider this information in the context of Bombs Away's overall financial health and stability. While equity distributions are not inherently negative, a large or consistent outflow of equity could raise concerns about the company's long-term financial sustainability. It would be prudent to inquire with Bombs Away about the reasons for the equity distributions and their plans for future equity management.