What was the 'Member's equity, beginning of year' for Floors To Go in 2024?
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 Floors To Go's 2025 Franchise Disclosure Document, the member's equity at the beginning of the year 2024 was $549,866. This figure represents the net worth of Floors To Go at the start of the 2024 fiscal year, reflecting the owner's stake in the company's assets after liabilities are accounted for.
Understanding the beginning member's equity is crucial for prospective franchisees as it provides insight into the financial stability and overall financial management of Floors To Go. It serves as a benchmark for assessing the company's financial performance throughout the year, especially when compared to the member's equity at the end of the year. A significant change in equity, whether positive or negative, can indicate the effectiveness of the company's operational strategies and its ability to generate profit.
Furthermore, the member's equity is directly linked to member distributions, which were (1,367,895) for 2024. These distributions represent the amount of money taken out of the company by its member. Reviewing these figures in conjunction with revenue and expenses offers a comprehensive view of Floors To Go's financial health, enabling potential franchisees to make informed decisions about their investment.