What was the reported balance in member's equity as of the end of the period for Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchise and License Fees | $ | 552,800 | $ | 416,000 |
|---|---|---|---|---|
| Total revenue | 20,614,115 | 20,477,315 | ||
| Gross Profit | 4,566,990 | 4,430,190 | ||
| Income from operations | 951,587 | 814,787 | ||
| Net income | 973,980 | 837,180 |
The impact on the consolidated statements of changes in member's equity is as follo
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the reported balance in member's equity as of the end of the period was reported and restated. The reported member's equity was $461,272, and the restated member's equity was $324,472.
It is important to note that the restated balance reflects corrections of errors discovered by management during the year. These errors resulted in an understatement of other current liabilities and other long-term liabilities, as well as an overstatement of franchise and license fees and net income as of December 31, 2023. The restatement of member's equity is a direct consequence of correcting these financial statement errors.
A prospective Focus Cfo franchisee should carefully review the auditor's report and the notes to the consolidated financial statements to understand the nature and impact of these restatements. Understanding the reasons behind these changes is crucial for assessing the financial health and stability of Focus Cfo. Franchisees should also inquire about the company's internal controls and procedures to prevent similar errors in the future.