What was the total equity for Cd One Price Cleaners as of December 30, 2022?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| Members' equity at December 31, 2021 | $ 390,846 |
|---|---|
| Capital contributed | - |
| Capital withdrawals | (1,005,000) |
| Net income, as restated (See Note 11) | 271,884 |
| Members' equity at December 30, 2022, as restated | (342,270) |
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the members' equity as of December 30, 2022, was approximately ($342,270). This figure represents the net assets of Cd One Price Cleaners attributable to its members after accounting for capital contributions, withdrawals, and net income up to that date. This number is restated from December 31, 2021.
Specifically, the calculation starts with members' equity at December 31, 2021, which was $390,846. There were no capital contributions, but there were capital withdrawals of ($1,005,000). The net income, as restated, was $271,884. Summing these values results in the members' equity at December 30, 2022, of ($342,270).
A prospective franchisee should understand that negative equity can indicate financial challenges or significant capital withdrawals. However, it is essential to consider this figure in the context of the company's overall financial performance and future prospects. Further analysis of the complete financial statements would be necessary to assess the long-term implications for Cd One Price Cleaners and its franchisees.