What was the balance of the member's equity for Extreme Art Studio as of December 31, 2023?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
ENT OF MEMBER'S EQUITY For the Year Ended December 31, 2023
| Balance at July 20, 2023 (Inception) | $ - |
|---|---|
| Member contributions | 22,622 |
| Net |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the balance of the member's equity as of December 31, 2023, was $15,001. The statement of member's equity shows the activity in the equity account from the company's inception on July 20, 2023, to the end of the year.
The member's equity increased due to member contributions of $22,622. However, this increase was partially offset by a net loss of $7,621 during the same period. The ending balance reflects the cumulative effect of these transactions.
For a prospective Extreme Art Studio franchisee, this indicates the initial capitalization and financial performance of the franchisor during its early stages. It's important to consider this in conjunction with other financial statements and information provided in the FDD to assess the overall financial health and stability of the franchisor.