What was the retained earnings at the beginning of the period for Bumper Man in 2023?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Equity | 2,838,346 | 2,926,730 | 3,113,193 | | Total Liabilities and Shareholders' Equity | $ 4,174,039 | $ 3,940,777 | $ 4,159,927 |
STATEMENT OF INCOME AND RETAINED EARNINGS
For the Year Ended
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue | $ 33,190,946 | $ 31,434,336 | $ 28,478,546 |
| General and Administrative Expenses | 31,971,220 | 30,133,163 | 27,103,650 |
| Net Operating Income | 1,219,726 | 1,301,173 | 1,374,896 |
| Other Income | |||
| Interest income | 14,860 | 10,026 | 14,988 |
| Net Income | 1,234,586 | 1,311,200 | 1,389,884 |
| Retained Earnings at the Beginning of the Period | 2 |
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the retained earnings at the beginning of the period in 2023 was $3,097,098. This figure represents the accumulated profits of Bumper Man that have been reinvested in the business rather than distributed to shareholders up to that point in time.
Retained earnings is a key indicator of a company's financial health and its ability to fund future growth. A higher retained earnings balance generally suggests that the company has been profitable and has effectively managed its finances. For a prospective Bumper Man franchisee, this indicates the franchisor has a history of profitability.
It is important to note that while retained earnings provide a snapshot of past financial performance, it does not guarantee future success. Prospective franchisees should consider this figure in conjunction with other financial data and market analysis to assess the overall viability of the Bumper Man franchise opportunity.