What is the reported total for furniture and equipment fixed assets for Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Total | ||
|---|---|---|
| ASSETS | , | |
| Current Assets | ||
| Bank Accounts | ||
| 1008 Wells Fargo Extreme Art 3537Checking | 15,001.21 | |
| Total Bank Accounts | $ | 15,001.21 |
| Accounts Receivable | ||
| 1100 Accounts Receivable | 0.00 | |
| Total Accounts Receivable | $ | 0.00 |
| Other Current Assets | ||
| Total Other Current Assets | $ | 0.00 |
| Total Current Assets | $ | 15,001.21 |
| Fixed Assets | ||
| 1500 Furniture and Equipment | 0.00 | |
| Total 1500 Furniture and Equipment | $ | 0.00 |
| 1600 Accumulated Depreciation | 0.00 | |
| Total Fixed Assets | $ | 0.00 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the total reported fixed assets for furniture and equipment is $0.00 as of December 31, 2023. This indicates that Extreme Art Studio either did not have any furniture and equipment at the time of this balance sheet, or that these assets were fully depreciated.
For a prospective franchisee, this could mean that Extreme Art Studio itself does not own substantial furniture or equipment, which might be atypical for a franchise system. It is important to note that this figure represents the franchisor's assets, not those of individual franchisees.
This information is based on the balance sheet included in the financial statements. A potential franchisee should investigate further to understand the typical investment required for furniture and equipment to set up their own Extreme Art Studio franchise location, as this cost is likely to be borne by the franchisee.