What was the member's equity (deficit) for Cilantro Taco Grill as of December 31, 2023?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
tal operating expenses | 36,540 | - | | Operating income (loss) | (36,540) | - | | Total other income (expense) | - | - | | Net income | $ (36,540) | $ - |
For the years ended December 31, 2023 and 2022 CTG Franchise, LLC STATEMENTS OF CHANGES IN MEMBERS' EQUITY
| BALANCE, December 21, 2022 (inception) | $ - | |-------------------
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the member's equity as of December 31, 2023, was $98,177. This figure represents the ownership stake in the company held by its members after accounting for all assets and liabilities. In comparison, the member's equity as of December 31, 2022, was $100,000.
The statement of changes in members' equity provides a more detailed breakdown of how this equity evolved over time. The balance at the inception of the company on December 21, 2022, was zero. Member contributions totaled $100,000, resulting in a balance of $100,000 by December 31, 2022.
In 2023, there were additional member contributions of $34,717, but the company also experienced a net loss of $36,540. This net loss reduced the member's equity, resulting in the final balance of $98,177 as of December 31, 2023. These figures are crucial for prospective franchisees to understand the financial health and stability of Cilantro Taco Grill.