What was the value of the common stock for Best Brains as of December 31, 2024?
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, 2024, was $1,000. The document also shows that the additional paid-in capital was $121,375 and retained earnings were $77,883, contributing to a total stockholders' equity of $200,258.
For a prospective Best Brains franchisee, this indicates the capital structure of the company. Common stock represents the basic ownership of the company, while additional paid-in capital reflects amounts received from investors above the par value of the stock. Retained earnings are the accumulated profits of the company that have not been distributed as dividends.
The stability and growth of these figures over time, as shown by comparison to the 2023 values, can provide insight into the financial health of Best Brains. The common stock value remained constant at $1,000 from 2023 to 2024, while retained earnings increased from $66,758 to $77,883, and total stockholders' equity increased from $189,133 to $200,258.
Reviewing these figures in the context of the full financial statements, including assets, liabilities, and cash flow, will give potential franchisees a more complete picture of Best Brains' financial position and its ability to support its franchisees.