What was the member's equity 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 Floors To Go, reflecting the assets remaining after deducting liabilities. It is a key indicator of the company's financial health and stability.
For a prospective franchisee, understanding the member's equity provides insight into the financial foundation of Floors To Go. A higher member's equity generally suggests a more stable and financially sound franchisor. This can be reassuring, as it indicates the company has sufficient assets to cover its liabilities and invest in supporting its franchisees.
However, it's important to consider this figure in conjunction with other financial metrics, such as revenue, expenses, and cash flow, to get a comprehensive understanding of Floors To Go's financial performance. Additionally, prospective franchisees should compare this figure to previous years to identify any trends or changes in the company's financial position. A consistent or growing member's equity is generally a positive sign, while a declining equity may warrant further investigation.
Ultimately, while the member's equity provides a snapshot of Floors To Go's financial position, prospective franchisees should conduct thorough due diligence and consult with financial advisors to assess the overall financial health and stability of the franchise opportunity.