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What was the total amount of members' equity for Deer Solution in 2023?

Deer_Solution Franchise · 2025 FDD

Answer 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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.