What was the total members' equity (deficit) for Buona in 2023?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| MEMBERS' EQUITY (DEFICIT) Members' Equity (Deficit) Members' Contributions | (122,239) - | (19,123) 25,000 |
| TOTAL MEMBERS' EQUITY (DEFICIT) | (122,239) | 5,877 |
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the total members' equity (deficit) for the company in 2023 was ($122,239). This indicates that Buona's liabilities exceeded its assets by this amount as of the end of 2023. In 2022, the total members' equity (deficit) was $5,877.
A members' deficit can arise from various factors, such as accumulated losses, distributions to owners exceeding profits, or accounting adjustments. It is important to note that this figure represents a snapshot in time and does not necessarily indicate long-term financial instability. However, prospective franchisees should carefully evaluate the trend in equity and the reasons behind the deficit.
Potential franchisees should consider this deficit when assessing the financial health of Buona. It would be prudent to inquire about the reasons for the deficit, the steps Buona is taking to address it, and its potential impact on the franchise system. Furthermore, comparing this figure to those of other franchise systems can provide a broader context for evaluating the financial stability of Buona.