What were the retained earnings (deficit) 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 company had a retained earnings deficit of $(110,516) in 2023. This figure represents the accumulated profits or losses of All County that have not been distributed to stockholders as of the end of 2023. The beginning retained earnings balance for 2023 was $188,109. During 2023, All County had stockholder contributions and distributions of $(589,724) and a net income of $271,100, which resulted in the ending retained earnings balance of $(110,516).
A retained earnings deficit, as seen here, can be a point of concern for potential franchisees. It indicates that the company has accumulated more losses than profits over its operating history. While a single year's deficit doesn't necessarily signal long-term instability, it's a factor that prospective franchisees should consider when evaluating the financial health of All County.
It is important to note that All County's retained earnings deficit improved significantly in the following year, 2024, reaching a balance of $195,251. This improvement suggests a positive turn in the company's financial performance. However, understanding the reasons behind both the deficit in 2023 and the subsequent recovery is crucial for making an informed investment decision.
Prospective franchisees should investigate the factors contributing to the 2023 deficit, such as specific expenses or investments made during that period. Additionally, they should seek clarification on the strategies implemented by All County to achieve the turnaround in 2024 and assess the sustainability of these strategies. Consulting with a financial advisor to review All County's financial statements and understand the implications of the retained earnings deficit is highly recommended.