What was the accumulated deficit for Americas Best Value Inn as of December 31, 2024?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| Common | Common | Paid In | Accumulated | Shareholders’ | |
|---|---|---|---|---|---|
| Shares | Stock | Capital | Deficit | Equity | |
| Balance at December 31, 2021 | 25,464,899 | $ 2 55 | $ 87,652 | $ (5,054) | $ 82,853 |
| Net loss | - | - | - | (3,186) | (3,186) |
| Balance at December 31, 2022 | 25,464,899 | 2 55 | 87,652 | (8,240) | 79,667 |
| Net Income | - | - | - | 1,477 | 1,477 |
| Balance at December 31, 2023 | 25,464,899 | 2 55 | 87,652 | (6,763) | 81,144 |
| Net loss | - | - | - | (2,913) | (2,913) |
| Balance at December 31, 2024 | 25,464,899 | $ 2 55 | $ 87,652 | $ (9,676) | $ 78,231 |
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Americas Best Value Inn's accumulated deficit as of December 31, 2024, was $"(9,676)". This figure represents the total losses and deficits that the company has accumulated over its operational history up to that date. This number is a component of the overall shareholders' equity. The balance at December 31, 2024, for shareholders' equity was reported as $78,231.
An accumulated deficit can arise from various factors, such as operating losses, significant expenses, or other financial challenges the company has faced. For a prospective franchisee, this information provides insight into the financial stability and historical performance of Americas Best Value Inn. While an accumulated deficit doesn't necessarily indicate ongoing financial instability, it's a point to consider when evaluating the overall health and prospects of the franchise.
It is important for potential franchisees to conduct thorough due diligence, including consulting with financial advisors, to fully understand the implications of the accumulated deficit and how it might affect the franchise system's future performance and support for its franchisees. Reviewing several years of financial statements, as provided in the FDD, can help provide a more complete picture of the financial trends and stability of Americas Best Value Inn.