What was All County's retained earnings (deficit) as of December 31, 2024?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
-
|
| 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 balance as of December 31, 2024, was $195,251. This figure represents the accumulated profits of All County that have been retained in the business rather than distributed as dividends to stockholders. Retained earnings are a key indicator of a company's financial health and its ability to reinvest in future growth. A positive retained earnings balance generally suggests that the company has been profitable over time.
For a prospective All County franchisee, this information provides insight into the financial stability and profitability of the franchisor. A strong retained earnings balance can indicate that All County is well-managed and has a track record of generating profits. This can be reassuring for franchisees who are considering investing in the All County system. It's also worth noting the trend in retained earnings over the past few years.
In All County's case, the retained earnings have fluctuated. The retained earnings balance at the end of 2023 was a deficit of ($110,516), while at the end of 2022, the retained earnings balance was $45,901. Reviewing these figures helps provide a more complete picture of All County's financial performance and its ability to manage its earnings effectively. A prospective franchisee should investigate the reasons behind these fluctuations to fully understand the financial risks and opportunities associated with investing in an All County franchise.
Overall, the retained earnings figure is an important piece of financial information for potential franchisees to consider. While a positive retained earnings balance is generally a good sign, it's essential to analyze the trend over time and understand the factors that have influenced the company's earnings. This information, combined with other financial data and due diligence, can help franchisees make informed decisions about investing in an All County franchise.