What were Casiola's total current liabilities in 2023?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
t, significant audit findings, and certain internal control related matters that we identified during the audit.
Metwally CPA PLLC
Metwally CPA PLLC Bedford, Texas March 18, 2024
| 2023 | ||
|---|---|---|
| ASSETS | - | |
| Current Assets | ||
| Cash and cash equivalents | $ 1 | ,823 |
| Due from related party | 1 | ,017 |
| otal Current Assets | 2 | ,840 |
| Total Assets | $ 2 | ,840 |
| LIABILITIES AND MEMBERS' E | QUITY (DEFICIT) | |
| Current Liabilities | ||
| Due to related party | $ 36. | ,001 |
| otal Current Liabilities | 36, | ,001 |
| otal Liabilities | 36, |
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the company's total current liabilities as of December 31, 2023, were $36,001. This figure represents the total amount the company owed in current liabilities at the end of the accounting period. The current liabilities consist entirely of what Casiola owed to a related party.
Specifically, this liability is categorized as "Due to related party" and represents payroll and other operating costs that were paid on behalf of Casiola by a related entity. This related party is identified in the notes as Casiola Miami, LLC and Casiola Orlando, LLC. The payable to the related party amounted to $36,001 as of the end of 2023.
For a prospective franchisee, understanding the liabilities of the franchisor is crucial. It provides insight into the financial obligations Casiola has and its overall financial health. A high level of current liabilities compared to assets could indicate potential financial strain, while a manageable level suggests stability. In Casiola's case, the liabilities are relatively small and are due to a related party, which may suggest a close relationship and potentially flexible repayment terms. However, it's important to further investigate the nature of these related-party transactions and their potential impact on the franchisor's financial performance.