What is the total members' equity for Chester's International, LLC as of the date of the financial statement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| CURRENT LIABILITIES | |||
|---|---|---|---|
| Accounts payable | $ 1,070,100 | $ 2,904,502 | |
| Accrued liabilities | 2,070,417 | 1,285,555 | |
| Customer deposits | 361,152 | 609,822 | |
| Current maturities of long-term debt | 480,225 | 1,628,607 | |
| Current portion of operating lease liability | 121,564 | 181,240 | |
| Unearned franchise fees | 190,950 | 136,500 | |
| Total current liabilities | 4,294,408 | 6,746,226 | |
| LONG-TERM LIABILITIES | |||
| Other long-term liabilities | 174,238 | - | |
| Operating lease liabilities, less current portion | 1,720,489 | 1,842,053 | |
| Long-term debt | 1,511,526 | 1,123,700 | |
| Total long-term liabilities | 3,406,253 | 2,965,753 | |
| TOTAL LIABILITIES | 7,700,661 | 9,711,979 | |
| MEMBERS’ EQUITY | 2,048,394 | 4,861,345 |
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chester's 2025 Franchise Disclosure Document, the total members' equity is presented in the financial statements. The document states that the members' equity is $2,048,394 for one period and $4,861,345 for another period.
It is important to note that the FDD excerpt does not specify the exact dates to which these equity figures correspond. Therefore, a prospective franchisee should verify which date each equity figure refers to in order to understand the financial position of Chester's at those specific times.
Understanding the trend in member's equity is crucial for potential franchisees as it provides insights into the financial stability and growth of Chester's. A positive trend typically indicates a healthy and expanding business, while a declining trend might raise concerns about the franchisor's financial management and future prospects. Therefore, it is advisable for potential franchisees to carefully review the full financial statements and seek professional advice to fully understand the implications of these figures.