What was the total amount of Best Brains' retained earnings as of December 31, 2024?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| 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 |
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 as of December 31, 2024, were $77,883. In comparison, the retained earnings as of December 31, 2023, were $66,758.
Retained earnings represent the cumulative net income of Best Brains that has been retained within the company rather than being distributed as dividends to shareholders. This figure is an important indicator of the company's financial health and profitability. An increase in retained earnings from 2023 to 2024 suggests that Best Brains was profitable during that period and chose to reinvest some of its earnings back into the business.
For a prospective Best Brains franchisee, this information provides insight into the financial stability and growth potential of the company. Healthy retained earnings can indicate that the franchisor is well-managed and has the resources to support its franchisees. However, it is essential to consider retained earnings in conjunction with other financial metrics and qualitative factors when evaluating a franchise opportunity. A prospective franchisee should analyze the complete financial statements and seek professional advice to fully understand the financial implications.