What was the total amount of long-term 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 company's total long-term liabilities in 2023 were $211,917. This figure represents the financial obligations Buona has that are not due within the next year. These liabilities are a part of the overall financial structure of the company, reflecting debts and obligations extending beyond the short term. Understanding the long-term liabilities can help potential franchisees assess the financial stability and long-term financial health of Buona.
Long-term liabilities are distinct from current liabilities, which are obligations due within one year. The FDD provides a breakdown of both types of liabilities, offering a more complete picture of Buona's financial commitments. Reviewing these figures in comparison to previous years, such as 2022 when long-term liabilities were $58,917, can reveal trends in the company's financial management and strategic decisions regarding debt and obligations. The increase in long-term liabilities from 2022 to 2023 could indicate investments in growth or changes in financing strategies.
For a prospective franchisee, this information is crucial for evaluating the financial risk and stability associated with investing in a Buona franchise. While long-term liabilities are a normal part of business operations, it is important to understand the nature of these obligations and how they might impact the franchisor's ability to support its franchisees. A significant increase in liabilities should prompt further investigation into the reasons behind the change and its potential implications for the franchise system.
It is also worth noting that the FDD includes other financial statements and notes that provide additional context to these figures. For example, Note 4 discusses contract balances related to deferred revenue and training fees, which are components of the liabilities. Analyzing these related disclosures can provide a more comprehensive understanding of Buona's financial position and the factors influencing its liabilities.