What was the value of common stock 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 | (1,440) | |
| Event expense | ||
| Automobile expense | 11,551 | - |
| Telephone | 7,010 | 5,785 |
| Licenses and permits | 6,056 | 262 |
| Contribution | 1,213 | 4,351 |
| Total Expenses | 8,592,366 | 6,182,958 |
| Income From Ope |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the value of common stock as of December 31, 2023, was $1,000. The document also indicates additional paid-in capital of $121,375 and accumulated deficits of $66,758, resulting in total stockholders' equity of $189,133 at the end of 2023.
These figures provide a snapshot of Best Brains' equity structure and financial health at that time. The common stock represents the initial investment by shareholders, while additional paid-in capital reflects amounts received from shareholders above the par value of the stock. Accumulated deficits represent the company's cumulative losses over its history.
For a prospective franchisee, understanding these figures is crucial for assessing the financial stability and long-term viability of Best Brains. A healthy equity position suggests that the company has sufficient capital to support its operations and growth. However, it's important to consider these figures in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial performance.
It is also important to note that these figures are based on audited financial statements, providing a degree of assurance regarding their accuracy and reliability. Franchisees should review the complete financial statements and consult with a financial advisor to fully understand the implications of these figures for their investment decision.