What was the amount of member distribution for Eos Worldwide in 2023?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
00,000 1,045,384 1,545,384 2,743,127 (3,500,000) Net income Member's distribution 2,743,127 (3,500,000) Balance, December 31, 2022 (3,000,000) 3,788,511 788,511 Net income Member's distribution 1,346,431 (715,000) 1,346,431 (715,000) Balance, December 31, 2023 $ (3,715,000) $ 5,134,942 1,419,942
Statements of Cash Flows Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $ | 1,346,431 | $ | 2,743,127 |
| Adjustments to reconcile net income to net cash provided by | ||||
| operating activities: | ||||
| (Increase) decrease in assets: | ||||
| Due from affiliates | (1,016,647) | (481,969) | ||
| Increase (decrease) in liabilities: | ||||
| Deferred revenue | 926,157 | 1,176,616 | ||
| Net cash provided by operating activities | 1,255,941 | 3,437,774 | ||
| Cash flows from financing activities: | ||||
| Me |
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, the member distribution for 2023 was $715,000. This figure represents the cash outflow from the company to its members during the specified period.
Member distributions are a common way for businesses, especially limited liability companies (LLCs) like Eos Worldwide Franchising, LLC, to distribute profits to their owners. The distribution amount reflects a portion of the company's earnings being returned to its members, which in this case is EOS HoldCo, LLC, the parent company.
For a prospective franchisee, understanding member distributions can provide insight into the financial management and profitability of the franchisor. While distributions are a normal part of business operations, significant or inconsistent distributions could raise questions about the company's financial strategy and long-term stability. Reviewing these figures in conjunction with net income and retained earnings can offer a more complete picture of the franchisor's financial health.