What is the reported total equity for Lees Famous Recipe's LFRC Mt. Sterling?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 12,0 00 | - | | - | - | 12,0 00 | | ain ed e ing Ret arn s | - | | 1,77 9,3 25 | - | | - | - | 1,77 9,3 25 | | Me mb er's ity equ | 2,9 16,4 09 | | - | 2,5 06, 700 | | 2,0 94, 464 | - | 7,5 17,5 73 | | Tot al e qui ty | 09 2,9 16,4 | | 5 1,79 1,32 | 700 2,5 06, | | 464 2,0 94, | - | 9,3 08, 898 | | Tot al L iab iliti and Eq uity es | $ 236 3,8 31, | $ | 082 3,4 71, | $ 720 4,0 45, | $ | 791 2,2 23, | $ - | $ 13, 571 ,82 9 |
LFRC RE HOLDINGS, LLC DECEMBER 31, 2023
| LFRC RE Mt. Sterling | LFRC SSB LLC | LFRC RE Springfield | LFRC RE Ft. Wayne | LFRC RE Sanford | Elimination | LFI | RC RE Holdings, LLC Total | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Current Assets: Cash and cash equivalents Intercompany amounts Total current assets | $ - - - | $ | 58,591 (33,327) 25,264 | $ | 161,521 (75,000) 86,521 | $ - - - | $ 1,364 (881) 483 | $ - - | $ | 221,476 (109,208) 112,268 |
| Property and Equipment, net | 1,152,000 | 3,030,628 | 6,661,667 | 3,935,004 | 512,896 | 15,292,195 | ||||
| Total Assets | $ 1,152,000 | $ L | 3,055,892 LIABILITIES | $ AN | 6,748,188 D EQUITY | $ 3,935,004 | $ 513,379 | $ | 15,404,463 | |
| Current Liabilities: Taxes payable Current portion of notes payable Total current liabilities | $ - - - | $ | 490 32,904 33,394 | $ | 82,678 82,678 | $ - |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 FDD, LFRC RE Mt. Sterling, one of Lee's Famous Recipe's real estate holding subsidiaries, reported total equity of $1,152,000. This figure represents the ownership stake in the subsidiary, calculated as the difference between its assets and liabilities. It reflects the net value attributable to the members or owners of LFRC RE Mt. Sterling.
For a prospective Lee's Famous Recipe franchisee, understanding the equity position of related entities like LFRC RE Mt. Sterling can provide insights into the overall financial health and stability of the franchise system. While franchisees do not directly own these entities, their performance can indirectly impact the franchisor's ability to support the franchise network. A strong equity position generally indicates a financially sound organization capable of investing in growth and franchisee support.
It's important to note that this equity figure pertains specifically to LFRC RE Mt. Sterling, which holds real estate assets. It does not reflect the financial performance of individual Lee's Famous Recipe restaurant operations. Franchisees should focus on the financial statements of the core franchising entity and any operating subsidiaries to assess the direct financial performance of the Lee's Famous Recipe franchise system. Reviewing these figures in context with other financial metrics and industry benchmarks is crucial for making an informed investment decision.