What was the equity of Cr3 American Exteriors at the start of the year, January 1, 2024?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Statements of Operations For The Two Years Ended December 31
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Statements of Changes in Members' Equity For The Three Years Ended December 31, 2024
| Equity at July 12, 2022 | $ - | |-------------
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the equity at the start of the year, January 1, 2024, was $18,871. This figure represents the company's net worth at that specific point in time, reflecting the cumulative effect of capital contributions and net losses from its inception through the end of 2023.
The equity calculation provides a snapshot of the financial health of Cr3 American Exteriors. It's important to note that this equity figure can fluctuate due to various factors, including capital contributions, net income or losses, and other financial activities. For instance, the document shows that the equity increased to $138,538 by December 31, 2024, due to additional capital contributions of $30,000 and a net income of $89,667 during that year.
For a prospective franchisee, understanding the franchisor's equity trend is crucial. A growing equity base generally indicates financial stability and the potential for continued investment in the franchise system. Conversely, a declining equity could raise concerns about the franchisor's ability to support its franchisees. Therefore, reviewing the franchisor's financial statements and equity history is a key part of due diligence before investing in a Cr3 American Exteriors franchise.