What was the total balance at September 30, 2024, for Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance at September 30, 2021 | $ | 3,638,000 | $ | 9,321,000 | $ | 12,959,000 |
|---|---|---|---|---|---|---|
| Net income | - | 7,476,000 | 7,476,000 | |||
| Distributions | - | (7,085,000) | (7,085,000) | |||
| Stock options exercised (555 shares) | _ | 93,000 | _ | _ | 93,000 | |
| Balance at September 30, 2022 | 3,731,000 | 9,712,000 | 13,443,000 | |||
| Net income | - | 7,626,000 | 7,626,000 | |||
| Distributions | - | (6,347,000) | (6,347,000) | |||
| Stock repurchase (2,560 shares) | _ | (1,325,000) | _ | _ | (1,325,000) | |
| Balance at September 30, 2023 | 2,406,000 | 10,991,000 | 13,397,000 | |||
| Net income | - | 7,357,000 | 7,357,000 | |||
| Distributions | (6,294,000) | (6,294,000) | ||||
| Balance at September 30, 2024 | $ | 2,406,000 | $ | 12,054,000 | $ | 14,460,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the total balance at September 30, 2024, was $14,460,000. This figure represents the total shareholders' equity, which is the sum of common stock valued at $2,406,000 and retained earnings of $12,054,000. This balance reflects the cumulative profits retained within the business over its operating history, alongside the value of issued common stock.
For a prospective franchisee, this number provides insight into the overall financial health and stability of Annex Brands. A higher balance typically indicates a stronger financial position, which can be reassuring for franchisees considering investing in the brand. It is important to note that this balance is a snapshot in time and can be influenced by various factors, including net income, distributions, and stock repurchases.
It is also useful to compare this figure with previous years to understand the trend in Annex Brands' financial performance. For instance, the balance at September 30, 2023, was $13,397,000, indicating an increase of over a million dollars in the total balance year-over-year. Analyzing these trends can provide a more comprehensive view of the company's financial trajectory and its ability to generate and retain profits.
When evaluating this information, potential franchisees should also consider other financial metrics and disclosures within the FDD, such as revenue, expenses, and liabilities, to gain a holistic understanding of Annex Brands' financial condition. Consulting with a financial advisor is recommended to interpret these financial statements in the context of their investment decision.