What was the total amount of Best Brains' liabilities and stockholders' equity in the later year presented?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Account and credit card payable | 4 | ,116,083 | 3 | ,545,720 | |
|---|---|---|---|---|---|
| Mortgages, notes, bonds payable within 1 year | 157,834 | 50,129 | |||
| Deferred franchise revenue - Current | 111,920 | 45,025 | |||
| Other current liabilities | 157,392 | 170,701 | |||
| Total Liabilities | 4 | ,543,229 | 3 | ,811,576 | |
| Non-Current Liabilities | |||||
| Mortgages, notes, bonds payable in 1 year or more | 300,090 | 94,311 | |||
| Economic injury disaster loan (EIDL) | 150,000 | 150,000 | |||
| Deferred franchise revenue - Non-current | 402,161 | 91,143 | |||
| Total Non-current Liabilities | 852,251 | 335,454 | |||
| Stockholders' Equity | |||||
| Common stock | 1,000 | 1,000 | |||
| Additional paid in capital | 121,375 | 121,375 | |||
| Retained earnings | 77,883 | 66,758 | |||
| Total Stockholders' Equity | 200,258 | 189,133 | |||
| Total Liabilities And Stockholders' Equity | $ 5,595,738 | $ 4,336,162 |
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the total liabilities and stockholders' equity for the later year presented is $5,595,738. This figure represents the sum of all the company's obligations to creditors (liabilities) and the investment of the owners in the company (stockholders' equity) at a specific point in time.
Understanding this number is crucial for prospective franchisees as it provides a snapshot of Best Brains' financial stability and overall financial health. A higher number generally indicates a stronger financial position, suggesting that the company has sufficient assets to cover its liabilities and a healthy level of equity.
However, it is important to analyze the components of this total figure, such as the breakdown between current and non-current liabilities, and the different elements of stockholders' equity, to gain a deeper understanding of the company's financial structure. Reviewing these details can help potential franchisees assess the level of risk associated with investing in a Best Brains franchise.