What was the retained earnings balance at the beginning of 2022 for All County?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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|
| Total National Advertising Fund | 24,885 | 81,159 | 85,801 |
|---|---|---|---|
| NET INCOME | 448,390 | 271,100 | 216,956 |
See accompanying Auditor's Report and Notes to the Financial Statements
Statements of Stockholders' Equity (Deficit) For Years Ended December 31, 2024, 2023, & 2022
| Year 2024 | Year 2023 | Year 2022 | |
|---|---|---|---|
| COMMON STOCK | |||
| Balance, Beginning & End of Year | $ 200 | $ 200 | $ 200 |
| ADDITIONAL PAID IN CAPITAL | |||
| End of Year | 142,008 | 142,008 | 142,008 |
| RETAINED EARNINGS (DEFICIT) | |||
| Retained Earnings Balance, Beginning of Year | (110,516) | 188,109 | 14,567 |
| Stockholder Contributions and (Distributions) | (162,622) | (589,724) | (185,622) |
| Net Income | 448,390 | 271,100 | 216,956 |
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the retained earnings balance at the beginning of 2022 was $14,567. This figure represents the accumulated profits of All County that have been kept within the company rather than distributed as dividends to stockholders. It's a key indicator of the company's financial health and profitability.
For a prospective All County franchisee, understanding the retained earnings is crucial as it reflects the financial stability and growth potential of the franchisor. A positive and growing retained earnings balance generally suggests that the company is profitable and reinvesting in its business, which can translate to better support and resources for franchisees. Conversely, a declining or negative balance might raise concerns about the franchisor's financial management and ability to support its franchisees.
It is important to note that retained earnings are just one aspect of a company's financial picture. A prospective franchisee should also consider other factors such as revenue, expenses, assets, and liabilities when evaluating the financial health of All County. Consulting with a financial advisor to review the complete financial statements is advisable to gain a comprehensive understanding of the franchisor's financial position and its implications for the franchise opportunity.