What was the total amount of Buona's long-term liabilities 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 categorized as 'Deferred Revenue, less Current Portion.'
Understanding long-term liabilities is crucial for prospective franchisees as it provides insight into the financial stability and long-term financial health of Buona. A significant increase in long-term liabilities could indicate that Buona is taking on more debt or has increasing obligations related to deferred revenue, which may affect its ability to support franchisees or invest in the brand's growth.
It is important to note that long-term liabilities are different from current liabilities, which are obligations due within one year. In 2023, Buona's total current liabilities were $169,552. When evaluating the overall financial health of Buona, prospective franchisees should consider both short-term and long-term liabilities in relation to the company's assets and equity.