What was the amount of Floors To Go's member distributions in 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31 | |||
|---|---|---|---|
| 2023 | 2022 | ||
| Revenue | |||
| Operating | $ 3,313,578 | $ 3,301,062 | |
| Sale | 13,451 | 5,000 | |
| of | |||
| franchise | |||
| licenses | |||
| Total | 3,327,029 | 3,306,062 | |
| revenue | |||
| Operating | |||
| expenses | |||
| Management | 800,000 | 800,000 | |
| fees ‐ related | |||
| party | |||
| Franchise | 474,154 | 418,488 | |
| related | |||
| costs | |||
| Commissions | 207,300 | 189,800 | |
| Travel, | 49,481 | 48,161 | |
| meals | |||
| and | |||
| entertainment | |||
| Professional | 44,403 | 55,813 | |
| services | |||
| Credit | 35,724 | 3,504 | |
| losses | |||
| General | 6,328 | 5,899 | |
| office | |||
| Total | 1,617,390 | 1,521,665 | |
| operating | |||
| expenses | |||
| Net | 1,709,639 | 1,784,397 | |
| income | |||
| Member's | 1,259,440 | 1,296,759 | |
| equity, | |||
| beginning | |||
| of | |||
| year | |||
| Member | (2,419,213) | (1,821,716) | |
| distributions | |||
| Member's | $ 549,866 | $ 1,259,440 | |
| equity, | |||
| end | |||
| of | |||
| year |
Statements of Cash Flows
Year Ended December 31 2023 2022 Cash flows from operating activities Net $ 1,709,639 $ 1,784,397 income Adjustments to reconcile net income to net cash provided by operating activities Credit 35,724 3,504 losses Changes in operating assets and liabilities which provided (used
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the member distributions for 2023 were $2,419,213. This figure is found within the Statements of Cash Flows, which details the financial activities of the company over the 2022 and 2023 fiscal years. These distributions represent cash outflows from the company to its members.
For a prospective franchisee, understanding member distributions is crucial as it provides insight into how the company allocates its financial resources. High distributions could indicate profitability, but it's important to consider this in the context of other financial metrics. A potential franchisee should analyze these distributions alongside net income, operating activities, and overall financial health to gain a comprehensive understanding.
It is also important to note that the document includes an independent auditor's report, which expresses an opinion on the fairness of the financial statements. This opinion adds credibility to the reported figures, but franchisees should still conduct their own due diligence and possibly consult with a financial advisor to fully assess the financial risks and opportunities associated with investing in a Floors To Go franchise.