What were the contract liabilities for Buona in 2022?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ed during the audit.
Adoption of New Accounting Principle
As more fully described in Note 10 to the financial statements, as of January 2, 2023, the Company adopted a new accounting principle that prescribes the recognition, measurement, presentation, and disclosure requirements related to the allowance for credit losses.
R.J. Augustine & Associates, Ltd.
CERTIFIED PUBLIC ACCOUNTANTS
April 19, 2024
CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING LLC DECEMBER 31, 2023 AND JANUARY 1, 2023 BALANCE SHEETS
ASSETS
| 2023 | 2022 | |
|---|---|---|
| CURRENT ASSETS Cash Prepaid Insurance | $ 251,155 8,075 | $ 102,820 7,998 |
| TOTAL CURRENT ASSETS | 259,230 | 110,818 |
| TOTAL ASSETS | $ 259,230 | $ 110,818 |
| LIABILITIES AND MEMBERS' EQUITY (DEFICIT) | ||
| 2023 | 2022 | |
| CURRENT LIAB |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the company's total liabilities were detailed in a balance sheet. The total liabilities for Buona in 2022 were $104,941. This figure includes both current liabilities and long-term liabilities.
Specifically, the current liabilities totaled $46,024, encompassing items such as the current portion of deferred revenue ($3,500), accounts payable ($2,524), and deposits for training fees ($10,000). The long-term liabilities, consisting solely of deferred revenue less the current portion, amounted to $58,917.
Understanding the breakdown of these liabilities is crucial for prospective franchisees. Contract liabilities typically represent obligations Buona has to its franchisees or other parties for services or goods not yet delivered or provided. Monitoring these liabilities can provide insights into the company's financial health and its ability to meet its obligations.