What was the total amount of Chesters' assets in 2024?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
L, LLC BALANCE SHEETS DECEMBER 31, 2024 AND 2023**
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash | $ 2,154,968 | $ 2,515,674 |
| Accounts receivable, net | 1,656,584 | 5,299,346 |
| Other receivables | 421,459 | - |
| Due from related parties | 1,354,649 | 1,117,539 |
| Inventories | - | 1,247,308 |
| Prepaid expenses and other current assets | 139,284 | 80,338 |
| Total current assets | 5,726,944 | 10,260,205 |
| PROPERTY AND EQUIPMENT, NET | 1,100,082 | 878,650 |
| OPERATING LEASE RIGHT-OF-USE ASSETS, NET | 1,631,103 | 1,820,812 |
| GOODWILL, NET | 1,290,926 | 1,613,657 |
| TOTAL ASSETS | $ 9,749,055 | $ 14 |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the company's total assets in 2024 amounted to $9,749,055. This figure represents the sum of Chesters' current assets, property and equipment, net of depreciation, operating lease right-of-use assets, net, and goodwill, net.
A significant portion of Chesters' assets in 2024 was in the form of current assets, totaling $5,726,944. This category includes cash ($2,154,968), accounts receivable net of allowance ($1,656,584), other receivables ($421,459), amounts due from related parties ($1,354,649), and prepaid expenses and other current assets ($139,284). Additionally, Chesters held $1,100,082 in property and equipment, net, $1,631,103 in operating lease right-of-use assets, and $1,290,926 in goodwill.
It is important to note the decrease in total assets from 2023 ($14,573,324) to 2024 ($9,749,055). This change could be due to various factors, such as changes in accounting practices, a decrease in accounts receivable, or the transition of supply chain distribution to third parties. Prospective franchisees should investigate the reasons for this decrease to fully understand the financial health and stability of Chesters.
Understanding the composition and changes in Chesters' asset values can help a potential franchisee assess the financial stability and investment risk associated with the franchise. Reviewing the balance sheets and related financial statements is a crucial step in the due diligence process.