What was the member's equity at the beginning of the year for Floors To Go in 2022?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
28,516 | | 34,409 | | | Due to franchisees - cashback program | | 483,563 | | 472,253 | | | Accrued expenses | | 284,241 | | 260,669 | | | Total liabilities (all current) | | 797,120 | | 777,094 | | | Member's equity | | 699,872 | | 549,866 | | | Total liabilities and member's equity | $ | 1,496,992 | $ | 1,326,960 | |
The accompanying notes are an integral part of these financial statements.
Statements of Income and Member's Equity
| Year Ended December 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Revenue | ||||
| Operating | $ | 3,132,489 | $ | 3,313,578 |
| Sale of franchise licenses | 22,496 | 13,451 | ||
| Total revenue | 3,154,985 | 3,327,029 | ||
| Operating expenses | ||||
| Management fees - related party | 800,000 | 800,000 | ||
| Franchise-related costs | 501,628 | 474,154 | ||
| Commissions | 186,800 | 20 |
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the member's equity at the beginning of the year 2022 was $1,259,440. This figure represents the net worth of Floors To Go at the start of the 2022 financial year, reflecting the owner's stake in the company's assets after liabilities are accounted for.
For a prospective franchisee, understanding the franchisor's equity is crucial as it provides insight into the financial stability and overall health of Floors To Go. A strong equity position typically indicates that the company has a solid foundation and is better positioned to support its franchisees. Conversely, a low or declining equity might raise concerns about the franchisor's ability to invest in necessary resources, training, and support systems.
It's important to note that this figure is just one data point in assessing the financial viability of Floors To Go. A potential franchisee should also consider other financial metrics, such as revenue, expenses, and cash flow, as well as the company's debt levels and overall financial management practices. Consulting with a financial advisor is recommended to fully interpret these financial statements and understand the potential risks and rewards of investing in a Floors To Go franchise.