What was the total members' equity (deficit) for Buona at the end of 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) at the end of 2023 was ($122,239). This figure represents the accumulated earnings or losses of Buona, minus any distributions to members, as of December 31, 2023. The negative value indicates that Buona's liabilities exceeded its assets at that time.
For a prospective franchisee, a deficit in members' equity could signal financial instability or that the company has been operating at a loss. It's important to consider this in the context of Buona's overall financial health, including its revenue, expenses, and cash flow. A franchisee should investigate the reasons behind the deficit and whether Buona has a plan to improve its equity position.
It is also useful to compare this figure to previous years. In 2022, Buona's total members' equity (deficit) was $5,877. The decrease from $5,877 in 2022 to ($122,239) in 2023 represents a significant change in the company's financial position. This could be due to a variety of factors, such as increased expenses, decreased revenue, or significant capital investments. A prospective franchisee should seek clarification from Buona regarding the reasons for this change and its potential impact on the franchise system.
It is important to note that members' equity is just one aspect of a company's financial health. A prospective franchisee should also consider other factors, such as Buona's profitability, cash flow, and debt levels, before making a decision to invest in the franchise.