What was the total amount of Card My Yard's members' equity in 2023?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Revenues | $ 47,493,372 | $ 38,119,222 |
| Cost of revenues | 14,071,864 | 10,711,574 |
| Gross profit | 33,421,508 | 27,407,648 |
| Operating expenses: Selling, general, and administrative Depreciation and amortization | 28,732,110 11,953,138 | 24,077,839 12,782,735 |
| Total operating expenses | 40,685,248 | 36,860,574 |
| Loss from operations | (7,263,740) | (9,452,926) |
| Other income (expense): Interest expense Other income (expense) | (5,462,474) 43,809 | (5,530,375) (218,954) |
| Total other expense, net | (5,418,665) | (5,749,329) |
| Loss before income taxes | (12,682,405) | (15,202,255) |
| Income tax benefit (provision) | 432,399 | (765,698) |
| Net | $ (12,250,006) | $ (15,967,953) |
| loss |
*For the years ended D
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the total members' equity as of December 31, 2023, was $61,292,873. This figure represents the ownership stake of the members in the company at that specific point in time. It is calculated by subtracting total liabilities from total assets, reflecting the net worth attributable to the members. This number is a key indicator of the financial health and stability of Card My Yard.
For a prospective franchisee, understanding the members' equity can provide insights into the financial structure of Card My Yard. A higher members' equity generally indicates a stronger financial foundation, which can be reassuring for those considering investing in a franchise. It demonstrates the company's ability to manage its assets and liabilities effectively.
However, it's also important to consider other factors such as the company's debt levels, revenue trends, and overall profitability. While a substantial members' equity is a positive sign, it should be evaluated in conjunction with other financial metrics to gain a comprehensive understanding of Card My Yard's financial performance. Reviewing the complete audited financial statements, including the balance sheets, income statements, and cash flow statements, is essential for making an informed investment decision.
Furthermore, the FDD also notes a net loss of $15,967,953 for the year 2023. This loss reduced the members' equity from $77,059,237 at the beginning of the year to the final balance of $61,292,873. Prospective franchisees should investigate the reasons for this loss and assess whether it is a one-time event or indicative of a broader trend. Understanding the factors contributing to the net loss is crucial for evaluating the potential risks and rewards of investing in a Card My Yard franchise.