What was the accumulated deficit for Best In Class Education Center as of December 31, 2024?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| 20 | 24 | 2023 | |
|---|---|---|---|
| Revenues | |||
| Royalties | $ 2 | 36,521 $ | 61,905 |
| Other franchise related fees | 56,550 | 19,823 | |
| Brand fund Income | 26,599 | 10,319 | |
| Transfer fees | 21,100 | 27,500 | |
| Initial franchise fees | 16,269 | 5,000 | |
| Total Revenues | 3 | 57,039 | 124,547 |
| Operating Expenses | |||
| General and administrative | 1 | 24,392 | 37,020 |
| Marketing and advertising | 79,694 | 22,291 | |
| Legal and professional | 83,877 | 16,826 | |
| Contractors | 55,877 | 78,349 | |
| Total Operating Expenses | 3 | 43,840 | 154,486 |
| Operating Income / (Loss) | - | 13,199 | (29,939) |
| Other Income (Expense) | - | ||
| Income tax benefit (expense) | (5,447) | 8,668 | |
| Net Income / (Loss) | $ | 7,752 $ | (21,271) |
The accompanying notes are an integral part of the financial statements.
| | Common Sto | r Value nount | P | ditional aid-in ap
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, the accumulated deficit as of December 31, 2024, was approximately ($13,519). This figure represents the total losses the company has incurred over its lifetime, offset by any profits it has earned. This number is important for prospective franchisees to consider, as it provides insight into the financial stability and historical performance of Best In Class Education Center.
It's also useful to note the changes in accumulated deficit over time. The FDD shows that as of February 10, 2023, the accumulated deficit was ($4). By December 31, 2023, this deficit had grown to ($21,271). However, by December 31, 2024, the accumulated deficit decreased to ($13,519). This improvement suggests that Best In Class Education Center became more profitable or reduced its losses during 2024.
When evaluating a franchise opportunity, it is essential to analyze the franchisor's financial statements, including the accumulated deficit, in the context of their overall financial health and business strategy. A decreasing accumulated deficit, as seen with Best In Class Education Center from 2023 to 2024, could indicate positive financial trends. However, prospective franchisees should conduct thorough due diligence and seek professional financial advice to fully understand the implications of this figure.