What was the total equity 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 total equity as of December 31, 2022, was $258,638.02. This figure represents the net worth of Best Brains at that specific point in time, reflecting the owners' stake in the company after deducting all liabilities from its assets.
Specifically, the equity is composed of common stock valued at $1,000.00, additional paid-in capital of $136,263.02, and retained earnings. Retained earnings represent the accumulated profits of Best Brains that have not been distributed to shareholders as dividends but have been reinvested in the business.
For a prospective Best Brains franchisee, this equity figure provides insight into the financial stability and capitalization of the franchisor. A higher equity amount generally indicates a stronger financial position, suggesting that Best Brains has sufficient assets to cover its liabilities and support its operations. However, it is essential to consider this figure in conjunction with other financial metrics and industry benchmarks to assess the overall financial health and performance of Best Brains.