What was the total member's equity for Floors To Go as of December 31, 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 as of December 31, 2024, was $699,872. This figure represents the ownership stake in Floors To Go held by its member(s) after deducting total liabilities from total assets. Understanding member's equity is crucial for prospective franchisees as it reflects the financial stability and net worth of the franchisor.
The member's equity is influenced by several factors, including the company's profitability, revenue, operating expenses, and member distributions. In 2024, Floors To Go had a net income of $1,517,901, which contributed positively to the member's equity. However, member distributions of $(1,367,895) partially offset this gain. The beginning member's equity for the year was $549,866, which, when combined with the net income and adjusted for member distributions, resulted in the ending member's equity of $699,872.
For a potential Floors To Go franchisee, this information is valuable in assessing the financial health of the franchise system. A higher member's equity generally indicates a more stable and financially sound franchisor. It is also important to compare these figures with previous years and industry benchmarks to evaluate the franchisor's performance and growth trajectory. Reviewing the complete audited financial statements, including the balance sheets, income statements, and cash flow statements, will provide a comprehensive understanding of Floors To Go's financial condition.