What was the balance of retained earnings for Bw Premier Collection as of November 30, 2024?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
Consolidated Statements of Changes in Net Assets
| (in thousands) | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests in Consolidated Subsidiaries | Total Net Assets |
|---|---|---|---|---|
| Balance - November 30, 2022 | $ 144,213 | $ 576 | $ 1,954 | $ 146,743 |
| Total excess of revenues over expenses (expenses over revenue) | 89,319 | - | (299) | 89,020 |
| Foreign currency translation adjustment, net of tax | - | (755) | - | (755) |
| Unrealized (losses) on available-for-sale debt securities, net of tax | - | (3,346) | - | (3,346) |
| Contributions from non-controlling interests | - | - | 175 | 175 |
| Balance - November 30, 2023 | 233,532 | (3,525) | 1,830 | 231,837 |
| Total excess of revenues over expenses (expenses over revenue) | 65,388 | - | (271) | 65,117 |
| Foreign currency translation adjustment, net of tax | - | (11) | - | (11) |
| Unrealized gains on available-for-sale debt securities, net of tax | - | 2,709 | - | 2,709 |
| Contributions from non-controlling interests | - | - | 75 | 75 |
| Balance - November 30, 2024 | 298 |
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the balance of retained earnings as of November 30, 2024, was $298,920,000. This figure represents the accumulated profits of Bw Premier Collection that have been retained in the business rather than distributed as dividends to owners. Retained earnings are a key indicator of a company's financial health and its ability to reinvest in future growth.
For a prospective franchisee, a strong retained earnings balance suggests that Bw Premier Collection is financially stable and has a history of profitability. This can be reassuring, as it indicates that the company is likely to have the resources to support its franchisees and invest in the brand's future. A healthy retained earnings balance can also enable Bw Premier Collection to fund new initiatives, such as marketing campaigns or technology upgrades, which can benefit all franchisees.
However, it's important to consider retained earnings in the context of Bw Premier Collection's overall financial position. While a high retained earnings balance is generally positive, it doesn't necessarily guarantee future success. Prospective franchisees should also review other financial statements, such as the balance sheet and income statement, to get a complete picture of Bw Premier Collection's financial performance. Additionally, it is important to investigate how Bw Premier Collection plans to utilize its retained earnings, ensuring that these plans align with the franchisee's best interests.
In the franchise industry, retained earnings can vary widely depending on the age, size, and profitability of the franchise system. Established franchise systems with a long track record of success tend to have higher retained earnings balances than newer or less profitable systems. Comparing Bw Premier Collection's retained earnings to those of other franchise systems in the same industry can provide valuable insights into its relative financial strength.