What was the total member's equity for Clean Your Dirty Face in 2023?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
ring the audit.
Canfield, Ohio March 17, 2025
Balance Sheets December 31, 2024 and 2023
Assets
| 2024 | 2023 | ||
|---|---|---|---|
| Current Assets | |||
| Cash and cash equivalents | $ 20,963 | $ | 23,501 |
| Investments - at fair market value | 750,000 | 1,276,253 | |
| Accounts receivable | 26,198 | 25,964 | |
| Member contributions receivable | 300,000 | - | |
| Total Current Assets | 1,097,161 | 1,325,718 | |
| Property and Equipment | |||
| Equipment | 585 | 585 | |
| Less: accumulated depreciation | (585) | (585) | |
| Net Property and Equipment | - | - | |
| Overpayment of credit card | 9,829 | - | |
| Total Assets | $ 1,106,990 | $ | 1,325,718 |
| Liabilities and Member's Equity | |||
| Liabilities | |||
| Credit cards payable | $ - | $ | 2,174 |
| Accrued expenses | 7,373 | 3,508 | |
| Deferred revenue | 700,000 | 850,000 | |
| Total Liabilities | 707, |
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 total member's equity at the end of 2023 was $470,036. This figure represents the ownership stake in the company held by its members, reflecting the accumulated capital, retained earnings, and other equity adjustments up to that point in time. This number is found in the balance sheets as of December 31, 2023.
Member's equity is a crucial indicator of the financial health and stability of Clean Your Dirty Face. It shows the net worth of the company from the perspective of its owners. A higher member's equity generally suggests a stronger financial position, indicating that the company has more assets than liabilities. This can be reassuring for prospective franchisees, as it implies that Clean Your Dirty Face is on solid financial footing.
It's important to note that member's equity can fluctuate from year to year due to factors such as net income, member contributions, and member distributions. In Clean Your Dirty Face's case, the statement of member's equity details these changes, showing the beginning equity, net income, contributions, distributions, and the resulting end-of-year equity. Reviewing these changes provides a more complete picture of the company's financial performance and how it impacts the ownership stake. Franchisees should analyze these trends to assess the long-term financial viability of Clean Your Dirty Face.
Prospective franchisees should also compare Clean Your Dirty Face's member's equity to those of other franchise systems in the same industry to benchmark its financial strength. Additionally, they should inquire about the factors that influence changes in member's equity and how Clean Your Dirty Face plans to manage and grow its equity in the future. Understanding these aspects can help franchisees make informed decisions about investing in the Clean Your Dirty Face franchise system.