What were the retained earnings for B Bops in 2024?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
2021
| Balance at January 1, 2021 | Capit | tal Stock - | dditional d-in Capital 149,999 | Retained Earnings 148,950 | Ś | Total 298,950 |
|---|---|---|---|---|---|---|
| Net Income | $ | $ /81 | $ 41,878 | $ | 41,878 | |
| Balance at December 31, 2021 | $ | 1 | $ 149,999 | $ 190,828 | $ | 340,828 |
| Net Income | $ | $ | $ 151,105 | $ | 151,105 | |
| Balance at December 31, 2022 | $ | 1 | $ 149,999 | $ 341,933 | $ | 491,933 |
| Net Income | $ | $ | $ 141,943 | $ | 141,943 | |
| Balance at December 31, 2023 | $ | 1 | $ 149,999 | $ 483,876 | $ | 633,876 |
| Net Income | $ | ¥ | $ - | $ 168,453 | $ | 141,943 |
| Distributions | (7,596) | (7,596) | ||||
| Balance at December 31, 2024 | $ | 1 | $ 149,999 | $ 644,733 | $ | 794 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the retained earnings at the end of 2024 were $644,733. This figure represents the accumulated net income of B Bops that has been retained within the company rather than being distributed as dividends to shareholders. Retained earnings are an important indicator of a company's financial health and its ability to reinvest in its business.
The provided table also shows the progression of B Bops's retained earnings over the past several years. The retained earnings increased from $148,950 at the beginning of 2021 to $644,733 by the end of 2024. This increase reflects the net income earned during those years, offset by any distributions made to shareholders. For example, in 2024, B Bops had a net income of $168,453 but also had distributions of $7,596, resulting in a net increase in retained earnings of $160,857 ($168,453 - $7,596).
For a prospective franchisee, retained earnings can be an important factor in assessing the financial stability and growth potential of B Bops. A healthy and growing retained earnings balance suggests that the company is profitable and has the resources to support its franchisees. However, it's important to consider retained earnings in conjunction with other financial metrics and qualitative factors, such as the company's business model, competitive landscape, and management team.