What was the retained earnings-unappropriated for Best Brains as of December 31, 2022?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Particulars | Schedule No. | As at December 31, 2023 | As at December 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Current Assets Cash & cash equivalents | 1 | 262,049.67 | 154,275.10 |
| Inventory | _ | 417,347.00 | 289,840.00 |
| Trade Receivables | 2 | 2,038,407.38 | 1,549,975.79 |
| Other Current Assets Total Currrent Assets | 3 | 255,726.78 2,973,530.83 | 225,576.84 2,219,667.73 |
| Property and Equipment ,net of accumulated depreciation | 4 | 290,790.28 | 268,207.05 |
| Other Assets | 5 | 1,076,049.46 | 958,557.46 |
| Total Assets | 4,340,370.57 | 3,446,432.24 | |
| Current liabilities Accounts Payable Other Current Liabilities Deferred Franchise revenue-current Total Current Liabilities | 6 | 3,444,214.53 276,415.25 45,025.00 3,765,654.78 | 2,654,584.46 80,489.91 65,939.00 2,801,013.37 |
| Long term liabilities | 7 | ||
| Loans & Advances | • | 144,439.99 | 140,568.45 |
| Mortgages ,notes , bonds payable in 1 year or m | iore | 150,000.00 | 150,000.00 |
| Deferred Franchise revenue-long term Total Long Term Liabilities | 91,143.01 385,583.00 | 96,212.40 386,780.85 | |
| Total Liabilities | 4,151,237.78 | 3,187,794.22 | |
| Shareholder's Equity | |||
| Common Stock | 1,000.00 | 1,000.00 | |
| Additional Paid in capital | 8 | 121,375.00 66,757.79 | 121,375.00 136,263.02 |
| Retained Earnings- Unappropriated | |||
| Total Equity | 189,132.79 | 258,638.02 | |
| Total Liabilities and Shareholder's Equity | 4,340,370.57 | 3,446,432.24 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the company's retained earnings-unappropriated as of December 31, 2022, was $136,263.02. Retained earnings represent the cumulative net profits that Best Brains has kept within the business rather than distributing as dividends to its shareholders. This figure is a key indicator of the company's financial health and profitability.
A prospective franchisee should consider the trend in retained earnings over time. An increase in retained earnings generally indicates that the company is profitable and reinvesting in its business, while a decrease could signal financial challenges or increased dividend payouts. In this case, the retained earnings decreased from $136,263.02 in 2022 to $66,757.79 in 2023.
It is important to note that retained earnings are not necessarily cash available for use. They are an accounting figure that represents the accumulated profits reinvested in the business. These earnings could be tied up in assets such as equipment, inventory, or accounts receivable. A potential Best Brains franchisee should review the complete financial statements and consult with a financial advisor to fully understand the implications of the company's retained earnings position.