What was the total amount of members' equity for Deer Solution in 2023?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | ||
|---|---|---|
| Revenues | ||
| Initial franchise fees | $ | 50,143 |
| Royalties | 33,500 | |
| Brand development fund | 8,401 | |
| Solution Center | 27,232 | |
| Total Revenues | 119,276 | |
| Operating Expenses | ||
| Advertising and marketing | 1,000 | |
| Insurance | 5,560 | |
| Commissions | 67,857 | |
| Professional and legal fees | 11,500 | |
| General and administrative | 11,770 | |
| Related party management fees | 38,000 | |
| Total Operating Expenses | - | 135,687 |
| Operating Income / (Loss) | (16,411) | |
| Net Income / (Loss) | $ | (16,411) |
Deer Solution Franchising, LLC Statement Of Members' Equity Year Ended December 31, 2023
| Members' E
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the total members' equity as of December 31, 2023, was $99,892. The members' equity at the start of the year, January 1, 2023, was listed as $ -. During 2023, members contributed $116,303, but the company experienced a net loss of $16,411, resulting in the year-end equity of $99,892.
Members' equity represents the ownership stake in Deer Solution held by its members, which is affected by contributions, losses, and retained earnings. A positive members' equity generally indicates a financially stable company, while a negative value could signal financial distress. In Deer Solution's case, the members' equity increased during the year due to contributions despite a net loss.
Prospective franchisees should consider the trend in members' equity when evaluating the financial health of Deer Solution. While the company experienced a net loss in 2023, the increase in members' equity due to contributions suggests ongoing investment and support from its members. It's important to review several years of financial statements to understand the long-term financial performance and stability of the franchise system.