What was the beginning balance for Chocolate Bash in 2022?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
F DECEMBER 31, 2023 & DECEMBER 31, 2022 & DECEMBER 31, 2021
| Opening Equity Balance | Yearly Changes | Total | |
|---|---|---|---|
| Beginning Balance | $ (8,826) $ | - | $ (8,826) |
| Net Income for the period ending December 31, 2021 | - | 38,808 | 38,808 |
| Equity Contributions (Distributions) | - | 17,940 | 17,940 |
| Balance, December 31, 2021 | $ (8,826) | $ 56,7 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the beginning balance for the period ending December 31, 2022, was $47,922. This figure represents the company's equity balance at the start of the 2022 fiscal year before any income, contributions, or distributions were accounted for during that year.
The beginning balance is a critical figure for understanding the company's financial standing at the start of the year. It serves as the baseline for measuring financial performance throughout the year. For prospective franchisees, this indicates the financial health and stability of Chocolate Bash as a franchise system.
In 2022, Chocolate Bash had a net income of $28,687 and equity distributions of ($30,100). Taking into account the beginning balance of $47,922, the net income of $28,687, and the equity distributions of ($30,100), the balance at the end of December 31, 2022 was $46,509.