What is the total value of stockholders' equity for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | |
|---|---|
| CURRENT ASSETS | |
| Cash | $ 674,566 |
| Accounts receivable, net | 177,403 |
| ERTC refundable credits receivable | 622,869 |
| Note receivable | 37,486 |
| Inventory | 46,012 |
| Prepaid expenses and other current assets | 25,865 |
| TOTAL CURRENT ASSETS | 1,584,201 |
| PROPERTY AND EQUIPMENT, NET | 166,232 |
| OPERATING LEASE RIGHT‐OF‐USE ASSETS | 101,778 |
| OTHER ASSETS | |
| Security deposits | 16,569 |
| Intangible assets, net | 166,667 |
| TOTAL ASSETS | $ 2,035,447 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| CURRENT LIABILITIES | $ 139,994 |
| Line of credit | |
| Long term debt, current portion | 52,064 |
| Capital lease obligations, current portion | 2,978 |
| Operating lease liabilities, current portion | 51,769 |
| Accounts payable | 67,373 |
| Accrued expenses | 147,208 |
| TOTAL CURRENT LIABILITIES | 461,386 |
| LONG TERM LIABILITIES | |
| Long term debt, net of current portion | 115,266 |
| Capital lease obligations, net of current portion | 2,054 |
| Operating lease liabilities, net of current portion | 51,318 |
| Due to affiliate | 5,421 174,059 |
| TOTAL LIABILITIES | 635,445 |
| COMMITMENTS AND CONTINGENCIES | |
| STOCKHOLDERS' EQUITY | |
| Common stock, $1 par value, 1,000 shares authorized, | |
| 300 issued and outstanding | 300 |
| Additional paid‐in capital | 844,977 554,725 |
| Retained earnings |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the total stockholders' equity is $1,400,002 as of the balance sheet dated December 31, 2022. This figure represents the net worth of the company from the perspective of its stockholders. It is calculated by subtracting total liabilities from total assets.
Stockholders' equity consists of several components, including common stock, additional paid-in capital, and retained earnings. The common stock is valued at $300, representing 300 shares issued and outstanding with a par value of $1 per share. Additional paid-in capital amounts to $844,977 554,725, reflecting the amount investors paid above the par value for the stock. Retained earnings, which represent the accumulated profits of the company that have not been distributed as dividends, contribute to the remaining balance of the total stockholders' equity.
For a prospective Closet Storage Concepts franchisee, understanding the franchisor's equity position is crucial. A strong equity base suggests financial stability and the ability to support the franchise network. However, it is essential to review the complete financial statements and assess the trends in equity over time to gain a comprehensive understanding of the franchisor's financial health. This information, combined with other due diligence, can help a franchisee make an informed decision about investing in the Closet Storage Concepts franchise system.