What was the beginning of year member's equity for Clean Your Dirty Face in 2023?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ 607,813 | $ | 531,500 | $ 205,324 | |
Statements of Member's Equity December 31, 2024 and 2023
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| Member's Equity | ||||||
| Beginning of year | $ | 470,036 | $ | (426,416) | ||
| Net income | 607,813 | 531,500 | ||||
| Member's contributions | 340,000 | 1,004,952 | ||||
| Member's distrib |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the beginning of year member's equity in 2023 was reported as negative $426,416. This figure represents the net investment of the member in the company at the start of the 2023 fiscal year. Member's equity can be affected by net income, member contributions, and member distributions.
For a prospective Clean Your Dirty Face franchisee, this information provides insight into the company's financial structure and how equity is managed. A negative beginning balance suggests that the company had an accumulated deficit from prior years. It is important to note that this is just one snapshot in time, and the overall financial health of the company should be evaluated by looking at trends over multiple years.
It is also important to consider the factors that contributed to this negative balance, such as prior losses or significant distributions to members. Reviewing the complete financial statements and related notes, along with consulting with a financial advisor, will provide a more comprehensive understanding of the franchisor's financial position and its potential impact on franchisees.