What was the Retained Earnings (Accumulated Deficit) for Aunt Millies Bakeries as of September 30, 2024?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
ncome (loss) - Effective Portion | - | (281,013) | | Gain recognized in net income - Ineffective portion | 239,862 | 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, 2024 and 2023 is as follows:
| Noting Non- | Non-voting Common Stock ser Amount 23,254 141,327 | Contributed Capital 8,070,989 | Accumulated Other Comprehensive Income 841,826 556,711 (281,013) 1,117,524 1,117,524 | Retained Earnings (Accumulated Deficit) (2,751,414) $ 14,199,697 - (4,946,915) 6,5
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the consolidated balance sheets of Perfection Bakeries, Inc. show the Retained Earnings (Accumulated Deficit) as of September 30, 2024. The balance sheet indicates a Retained Earnings (Accumulated Deficit) of $(2,751,414).
This figure represents the cumulative profits or losses that Aunt Millies Bakeries has retained over the years. A negative value, in this case, indicates an accumulated deficit, meaning the company's losses have exceeded its earnings over the period. This is a critical financial metric for prospective franchisees to consider, as it provides insight into the financial health and stability of the company.
It is important to note that Perfection Bakeries, Inc. includes Perfection Distribution LLC, Perfection Associates LLC, and First Capital Acceptance Corporation. All significant intercompany account balances and transactions have been eliminated in the consolidated financial statements. A prospective franchisee should further investigate the reasons behind the accumulated deficit and understand the company's plans to address it. Reviewing the complete financial statements and consulting with a financial advisor is recommended to fully assess the financial risks and opportunities associated with investing in an Aunt Millies Bakeries franchise.