According to the financial statements, what was the value for Chesters in 2024?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | ||
|---|---|---|
| 2023 | 2022 | |
| CURRENT ASSETS | ||
| Cash | $ 2,515,674 | $ 2,392,340 |
| Accounts receivable, net of allowance for | ||
| doubtful accounts | 5,299,346 | 3,735,366 |
| Due from related parties | 1,117,539 | 684,044 |
| Inventories, net | 1,247,308 | 1,130,712 |
| Prepaid expenses | 49,815 | 101,200 |
| Total current assets | 10,229,682 | 8,043,662 |
| PROPERTY AND EQUIPMENT, NET | 878,650 | 148,788 |
| OPERATING LEASE RIGHT-OF-USE ASSETS, NET | 1,820,812 | 1,304,672 |
| GOODWILL, NET | 1,613,657 | 1,936,388 |
| INTANGIBLE ASSETS, NET | 30,523 | 52,666 |
| TOTAL ASSETS | $ 14,573,324 | $ 11,486,176 |
| LIABILITIES AND MEMBERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Current maturities of long-term debt | $ 1,628,607 | $ 1,809,133 |
| Accounts payable | 2,904,502 | 719,790 |
| Accrued liabilities | 1,285,555 | 1,365,243 |
| Customer deposits | 609,822 | 533,879 |
| Current portion of operating lease liability | 181,240 | 398,805 |
| Unearned franchise fees | 136,500 | 224,900 |
| Total current liabilities | 6,746,226 | 5,051,750 |
| LONG-TERM LIABILITIES | ||
| Operating lease liabilities, less current portion | 1,842,053 | 905,867 |
| Long-term debt | 1,123,700 | 1,429,725 |
| Total long-term liabilities | 2,965,753 | 2,335,592 |
| TOTAL LIABILITIES | 9,711,979 | 7,387,342 |
| MEMBERS' EQUITY |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
Based on the 2025 FDD, the financial statements include balance sheets as of December 31, 2024, and 2023. These statements also include statements of income, member equity, and cash flows for the fiscal years ended December 31, 2024, 2023, and 2022. The total liabilities and members' equity for Chesters was $14,573,324 as of December 31, 2024.
These figures are derived from audited financial statements prepared by Warren Averett, LLC. The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which requires management to make estimates and assumptions that could affect the reported amounts of assets and liabilities.
Prospective franchisees should carefully review the complete financial statements and notes within Item 21 of the FDD. Understanding Chesters' financial performance and position is crucial for assessing the financial health and stability of the franchise system. It is also important to consult with a financial advisor to fully understand the implications of these financial statements.