What was the total value of Mr. Sandless's property and equipment (net) at the end of 2023?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Muhammad Zubairy, CPA Valley Stream, NY April 2, 2024
MR. SANDLESS FRANCHISE, LLC BALANCE SHEETS
| ASSETS | ||
|---|---|---|
| YEARS ENDED DECEMBER 31 | ||
| 2023 | 2022 | |
| Current Assets | ||
| Cash | $ 50,575 | $ 8,760 |
| Accounts receivable | 49,667 | 45,783 |
| Inventory | 8,013 | 11,865 |
| Prepaid expenses | — | — |
| Due from related party | 64,122 | 82,500 |
| Total Current Assets | 172,377 | 148,908 |
| Property and Equipment-net | 64,898 | 7,290 |
| Security deposit | 2,000 | 2,000 |
| Total Assets | $ 239,275 | $ 158,198 |
| LIABILITIES AND MEMBERS' (DEFICIT) | ||
| Current Liabilities | ||
| Accounts payable and accrued expenses | $ 244 | $ 144 |
| Due to related p |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the net book value of property and equipment as of December 31, 2023, was $64,898. This figure represents the original cost of Mr. Sandless's assets like office equipment, computer equipment, and automobiles, less any accumulated depreciation.
For a prospective franchisee, this indicates the level of investment Mr. Sandless has in its own operational assets. It's important to note that these assets are depreciated using the straight-line method over five years, which means the value is reduced evenly over that period. This depreciation is an accounting practice that reflects the wear and tear of assets over time.
Reviewing the trend in property and equipment values over several years, as presented in the financial statements, can give a franchisee insight into Mr. Sandless's capital expenditure strategy. A consistent investment might suggest a commitment to maintaining up-to-date equipment, while a declining value could indicate aging assets or a different investment approach. It is important to note that the financial statements included in the FDD are unaudited for the period ending February 28, 2025.