What was the total equity for Best Brains as of December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Revenue | ||
| Franchise fees | $ 77,987 | $ 75,983 |
| Royalty Income | 4,075,600 | 3,502,324 |
| Tuition fees | 1,101,650 | - |
| Material charges | 2,824,687 | 1,974,379 |
| Other operating income | 653,611 | 582,654 |
| Gross Income | 8,733,534 | 6,135,341 |
| Expenses | ||
| Software expense | 1,107,354 | 893,316 |
| Payroll expense | 1,364,838 | 1,124,746 |
| Tuition Fee Reimbursement | 1,103,757 | - |
| Material development charges | 895,686 | 892,640 |
| Contractor's payment | 842,453 | 317,037 |
| Bad debt | 464,041 | - |
| Advertising and marketing | 441,906 | 311,486 |
| Supplies | 381,648 | 283,847 |
| Rent | 275,834 | 286,147 |
| Legal and professional fees | 271,716 | 222,915 |
| Office expense | 248,265 | 205,009 |
| Travel | 157,219 | 203,700 |
| Outside services | 147,209 | 768,500 |
| Insurance | 140,216 | 120,390 |
| Interest expense | 137,921 | 14,001 |
| Payroll taxes | 104,997 | 85,900 |
| Depreciation | 77,662 | 54,176 |
| Shipping and customs | 74,549 | 76,848 |
| Dues and subscriptions | 58,659 | 40,966 |
| Repairs and maintainence | 54,803 | 42,157 |
| Postage | 50,279 | 36,227 |
| Meals and entertainment | 47,496 | 70,512 |
| Commission expense | 29,473 | 22,111 |
| Taxes and license | 9,998 | 55,798 |
| Bank and merchant processing fees | 29,268 | 31,986 |
| Utilities | 25,095 | 13,583 |
| 24,194 | (1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the total stockholders' equity as of December 31, 2023, was $189,133. This figure represents the net worth of Best Brains, Inc. at that specific point in time, reflecting the owners' stake in the company after deducting liabilities from assets.
Stockholders' equity is composed of several components, including common stock, additional paid-in capital, and retained earnings. For Best Brains, the common stock was valued at $1,000, with an additional paid-in capital of $121,375. The retained earnings, which represent the accumulated profits of the company less any dividends paid out, amounted to $66,758 as of the same date.
For a prospective franchisee, understanding the franchisor's equity can provide insights into the financial stability and overall health of Best Brains. A higher equity amount generally indicates a stronger financial position, which can be reassuring for franchisees who are considering investing in the franchise system. It's important to note that equity can fluctuate over time due to various factors, including profitability, distributions to owners, and changes in assets and liabilities.