What was the total value of Mr. Sandless's 'Property and Equipment-net' as of December 31, 2021?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
vernance 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.
Monis Siddiqui, CPA P.C.
Bellerose, NY April 28, 2023
MR. SANDLESS FRANCHISE, LLC BALANCE SHEETS
| ASSETS | ||
|---|---|---|
| YEARS ENDED DECEMBER 31 | ||
| 2022 | 2021 | |
| Current Assets | ||
| Cash | $ 8,760 | $ 17,509 |
| Accounts receivabl |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the 'Property and Equipment-net' value as of December 31, 2021, was $19,944. This figure represents the net book value of Mr. Sandless's assets, which include office equipment, computer equipment, and automobiles, after accounting for accumulated depreciation. These assets are depreciated using the straight-line method over an estimated useful life of five years.
For a prospective franchisee, understanding the 'Property and Equipment-net' value provides insight into the tangible assets Mr. Sandless owns and utilizes in its operations. A higher net value might indicate more substantial investments in equipment, while a lower value could suggest older or heavily depreciated assets. It is important to note that these assets are depreciated over five years, which is a standard accounting practice to reflect the decline in value of these assets over time.
It's also worth noting that these financial statements are unaudited, meaning they have not been independently verified by a certified public accountant. While this doesn't necessarily invalidate the figures, it does mean that prospective franchisees should exercise due diligence and consider seeking professional financial advice to review these statements and assess the financial health of Mr. Sandless. This is a common disclaimer in franchise disclosure documents, but it underscores the importance of thorough investigation before making any investment decisions.
In addition to the 'Property and Equipment-net' value, the FDD also provides information on depreciation expenses. For the year ended December 31, 2021, the depreciation expense was $14,091. This expense reflects the reduction in the value of the company's assets over that year. Reviewing these figures in conjunction with other financial data, such as revenue and expenses, can help potential franchisees gain a more comprehensive understanding of Mr. Sandless's financial performance and stability.