What was the retained earnings (deficit) for Chocolate Bash as of December 31, 2022?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| ASSETS | 12/31/23 12/31/22 12/31/21 | ||
|---|---|---|---|
| CURRENT ASSETS | |||
| Cash and Cash Equivalents | $ 21,639 | $ 59,295 | $ 104,922 |
| Accounts Receivable | 2,153 | 21,194 | - |
| TOTAL CURRENT ASSETS | 23,792 | 80,489 | 104,922 |
| NON-CURRENT ASSETS | |||
| Due To/From Related Party | 35,956 | - | - |
| TOTAL NON-CURRENT ASSETS | 35,956 | - | - |
| TOTAL ASSETS | 59,748 | 80,489 | 104,922 |
| LIABILITIES AND OWNER'S EQUITY | |||
| CURRENT LIABILITIES | |||
| Deferred Revenue, current portion | 7,146 | 3,500 | 24,750 |
| TOTAL CURRENT LIABILITIES | 7,146 | 3,500 | 24,750 |
| NON-CURRENT LIABILITIES | |||
| Deferred Revenue | 51,729 | 30,479 | 32,250 |
| TOTAL NON-CURRENT LIABILITIES | 51,729 | 30,479 | 32,250 |
| TOTAL LIABILITIES | 58,875 | 33,979 | 57,000 |
| OWNER'S EQUITY | |||
| Retained Earnings (Deficit) | (14,611) 17,822 | 9,114 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the balance sheet shows the company's financial position as of December 31, 2022. The retained earnings for Chocolate Bash as of this date was $17,822. This figure represents the accumulated profits of the company after accounting for dividends or other distributions to its owners.
Retained earnings is a key indicator of a company's financial health. A positive retained earnings balance suggests that the company has been profitable over time and has reinvested its earnings back into the business rather than distributing them to owners. This can provide a cushion for future investments, expansions, or unexpected financial challenges.
For a prospective Chocolate Bash franchisee, this information offers insight into the financial stability and profitability of the franchisor. While retained earnings is just one aspect of financial health, it can be a useful data point when evaluating the overall strength and potential of the franchise opportunity. It is important to consider this figure in conjunction with other financial metrics and information provided in the FDD to gain a comprehensive understanding of the company's financial standing.