What was the total amount of current liabilities for Buona in 2023?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
any's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
R.J. Augustine & Associates, Ltd. CERTIFIED PUBLIC ACCOUNTANTS
April 14, 2025
CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISING LLC DECEMBER 29, 2024 AND DECEMBER 31, 2023 BALANCE SHEETS
ASSETS
| 2024 | 2023 | |
|---|---|---|
| CURRENT ASSETS Cash Prepaid Insurance | $ 99,546 6,580 | $ 251,155 8,075 |
| TOTAL CURRENT ASSETS | 106,126 | 259,230 |
| TOTAL ASSETS | $ 106,126 | $ 259,230 |
| LIABILITIES AND MEMBERS' EQUITY (DEFICIT) | ||
| 2024 | 2023 | |
| CURRENT LIABILITIES Current Portion of Deferred Revenue Accounts Payable Accru |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the total current liabilities for 2023 were $169,552. This figure represents the sum of several short-term financial obligations, including the current portion of deferred revenue, accounts payable, accrued accounts payable, amounts due to affiliates, and deposits for training fees. These are liabilities that Buona is expected to settle within one year.
Specifically, the current liabilities for 2023 include $11,000 for the current portion of deferred revenue, $6,192 in accounts payable, $360 in accrued accounts payable, $122,000 due to affiliates, and $30,000 in deposits for training fees. Understanding the composition and magnitude of these liabilities is crucial for prospective franchisees, as it provides insight into Buona's short-term financial health and obligations.
For a potential Buona franchisee, this information is useful for assessing the financial stability of the franchisor. A high level of current liabilities relative to current assets could indicate potential liquidity issues. It is advisable for prospective franchisees to compare these figures with those of previous years and with industry benchmarks to gain a comprehensive understanding of Buona's financial standing and its ability to support its franchisees.