What was All County's retained earnings (deficit) as of December 31, 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's retained earnings (deficit) as of December 31, 2023, was ($110,516). This figure represents the accumulated profits or losses of All County that have not been distributed to stockholders as of that date. A deficit, indicated by the negative sign, means that the company's accumulated losses exceeded its accumulated profits up to that point in time.
Specifically, the FDD outlines the changes in retained earnings over a three-year period. For All County, the beginning retained earnings balance in 2023 was $188,109. During the year, stockholder contributions and distributions resulted in a reduction of ($589,724), and the company generated net income of $271,100. These factors combined to result in the ending retained earnings (deficit) balance of ($110,516) as of December 31, 2023.
For a prospective franchisee, this information provides insight into All County's financial performance and stability. While a retained earnings deficit might raise concerns, it's important to consider the context, including the company's recent net income and overall financial trends. Reviewing the complete financial statements and notes, including the independent auditor's report, will give potential franchisees a more comprehensive understanding of All County's financial health.