What was the member's equity amount for Floors To Go as of December 31, 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
nditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Balance Sheets
| December 31 | |||||
|---|---|---|---|---|---|
| ASSETS | 2024 | 2023 | |||
| Current assets | |||||
| Cash | $ | 973,148 | $ | 812,308 | |
| Accounts receivable, less allowance for credit | |||||
| losses of approximately $33,500 ($27,500 in 2023) | 471,369 | 461,463 | |||
| Prepaid expenses | 2,475 | 3,189 | |||
| Total current assets | 1,446,992 | 1,276,960 | |||
| Goodwill | 50,000 | 50,000 | |||
| Total assets | $ | 1,496,992 | $ | 1,3 |
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's equity as of December 31, 2023, was $549,866. This figure represents the ownership stake in the company held by its member(s) after deducting all liabilities from its assets. This number is found on the balance sheet, which provides a snapshot of the company's financial position at a specific point in time.
For a prospective Floors To Go franchisee, the member's equity can be an indicator of the company's financial stability and overall health. A higher member's equity generally suggests a stronger financial foundation. It reflects the accumulated profits and investments in the company over time. Reviewing trends in member's equity over several years, as presented in the FDD, can provide insights into the company's financial performance and growth trajectory.
It's important to note that member's equity is just one aspect of the overall financial picture. A potential franchisee should also consider other factors such as revenue, expenses, cash flow, and debt levels to gain a comprehensive understanding of Floors To Go's financial condition. Consulting with a financial advisor to analyze these financial statements is advisable before making any investment decisions.
Furthermore, understanding the components of member's equity, such as retained earnings and capital contributions, can offer additional insights into how the company is financed and how profits are managed. This information, combined with other due diligence efforts, can help a prospective franchisee assess the financial risks and opportunities associated with investing in a Floors To Go franchise.