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What was the total amount of Buona's liabilities in 2024?

Buona Franchise · 2025 FDD

Answer 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 company's total liabilities for 2024 were $343,347. This figure represents the sum of Buona's current liabilities ($107,148) and long-term liabilities ($236,199) as of December 29, 2024.

Understanding the composition of these liabilities is crucial for prospective franchisees. Current liabilities typically include obligations due within one year, such as accounts payable, accrued expenses, and the current portion of deferred revenue. Long-term liabilities, on the other hand, are obligations extending beyond one year, such as deferred revenue less the current portion. Deferred revenue arises from advance payments received for services or products not yet delivered.

For a potential Buona franchisee, this information provides insight into the company's financial health and stability. A high level of liabilities compared to assets could indicate financial strain, while a manageable level suggests responsible financial management. It is important to analyze these figures in conjunction with other financial data in the FDD, such as revenue, expenses, and equity, to gain a comprehensive understanding of Buona's financial position. Consulting with a financial advisor is recommended to fully assess the implications of these liabilities for your investment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.