What was the amount of retained earnings (accumulated deficit) for Aunt Millies Bakeries on October 1, 2021?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
in other comprehensive income (loss) - Effective Portion | (281,013) | 307,182 | | Gain recognized in net income - Ineffective portion | 177,184 | - |
NOTE 14 - RELATED PARTY TRANSACTIONS
The Company has subordinated debt through stockholders and has various leases with related parties. Refer to Note 5 and Note 6 for further information of the related party debt and lease transactions, respectively.
NOTE 15 - STOCKHOLDERS' EQUITY
Changes in stockholders' equity for the years ended September 30, 2023 and 2022 is as follows:
| Total Equity | $ 11,736,622 (5,256,940) | (458,749) | 307,182 (9,684) | 6,318,431 | 14,199,697 | (281,013) (4,946,915) | $ 15,846,911 | |
|---|---|---|---|---|---|---|---|---|
| Retained | (Accumulated Deficit) | 2,515,210 (5,256,940) | • | _ | (2,751,414) | 14, 199,097 | (4,946,915) | $ 6,501,368 |
| Earnings | (9,684) | |||||||
| Accumulated | prehensive | 993,393 | (458,749) | 307,182 | 841,826 | 556,711 | (281,013) | $ 1,117,524 |
| Other Com- | Income | |||||||
| Contributed Capital | 8,070,989 | • | 8,070,989 | , , | $ 8,070,989 | |||
| ting | Amount | 141,327 | ' | 1 1 | 141,327 | $ 141,327 | ||
| Stock | ||||||||
| Non-voting | Number | 3,423,254 | a | 1 1 | 3,423,254 | 3,423,254 | ||
| Common Stock | of |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, on October 1, 2021, the company had retained earnings (accumulated deficit) of $2,515,210 (5,256,940). This indicates a deficit, as the figure is presented in parentheses.
For a prospective franchisee, this figure provides a snapshot of the company's financial health at that specific point in time. A significant accumulated deficit could raise concerns about the company's profitability and its ability to support its franchisees. However, it is essential to consider this figure in the context of the company's overall financial performance, including its revenues, expenses, and assets.
It's important to note that this is just one data point, and a thorough financial analysis would be necessary to fully understand the implications of this accumulated deficit. A potential franchisee should review the complete financial statements and consult with a financial advisor to assess the financial stability of Aunt Millies Bakeries.