What was the members' equity at the end of 2024 for Chesters?
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)
According to Chesters's 2025 Franchise Disclosure Document, the total liabilities and members' equity at the end of 2024 was $14,573,324. This figure represents the sum of all the company's liabilities to outside parties and the equity held by its members (owners) at that specific point in time. This number is crucial for understanding the overall financial structure and stability of Chesters.
For a prospective franchisee, this number provides insight into the financial health of the franchisor. A higher members' equity suggests a stronger financial base, which can be reassuring. It indicates that Chesters has a significant stake in the company and has accumulated value over time. This can be a positive sign, suggesting that the company is well-managed and profitable.
However, it's important to consider this figure in conjunction with other financial metrics. For example, comparing the members' equity to the total liabilities can give a sense of the company's leverage. A high level of liabilities relative to equity might indicate higher financial risk. Therefore, while the $14,573,324 figure is a good starting point, a thorough review of the entire financial statement is necessary to fully assess the financial stability of Chesters.