What was the retained earnings balance at the end of the year for All County in 2023?
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 Contributio |
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 end of 2023 was a deficit of $110,516. This figure represents the accumulated profits or losses that All County has retained in its business since its inception, after accounting for dividends or distributions to stockholders. A deficit in retained earnings indicates that the company's accumulated losses and distributions exceed its accumulated profits.
For a prospective All County franchisee, this information provides insight into the financial health and historical profitability of the franchisor. While a retained earnings deficit might raise concerns, it's important to consider the context. The deficit could be the result of significant investments in growth, strategic decisions, or temporary economic downturns. It is also important to note that the company had a net income of $271,100 in 2023, which contributed to offsetting the deficit.
It is also important to note that All County's total stockholder's equity at the end of 2023 was $31,692. This means that despite the retained earnings deficit, the company still had positive overall equity. A prospective franchisee should investigate the reasons behind the retained earnings deficit and assess whether it poses a risk to the stability and support provided by the franchisor. Reviewing the complete financial statements and discussing the matter with All County's management team would be prudent to gain a comprehensive understanding.