What were the distributions for Creative Colors Emotional, Inc.?
Creative_Colors Franchise · 2025 FDDAnswer from 2025 FDD Document
| Retained Earnings (Accumulated | | Deficit)/Partners' Capital, Beginning | | 634,054 | | 157,976 | | - | | 792,030 | | Distributions | _ | (235,843) | | (17,979) | | | _ | (253,822) | | Retained Earnings/Partners' Capital, Ending | $ | 573,904 | $ | 162,720 | $ | | $ | 736,624 |
Source: Item 23 — RECEIPT (FDD pages 69–217)
What This Means (2025 FDD)
According to Creative Colors' 2025 Franchise Disclosure Document, the distributions for Creative Colors Emotional, Inc. were ($235,843). This means that Creative Colors Emotional, Inc. distributed $235,843 to its owners or shareholders during the reporting period. This distribution reduced the retained earnings of the company.
For a prospective franchisee, understanding these distributions is crucial as it provides insight into how the company manages its finances and allocates profits. While this figure pertains specifically to Creative Colors Emotional, Inc., it offers a glimpse into the broader financial practices within the Creative Colors network. It is important to note that distributions can fluctuate based on profitability, investment strategies, and other financial decisions.
Franchisees should consider this information in conjunction with other financial metrics provided in the FDD, such as revenue, expenses, and net income, to gain a comprehensive understanding of the financial health and stability of Creative Colors. Additionally, prospective franchisees may want to inquire about the factors influencing distribution decisions and how they might impact the long-term growth and sustainability of the franchise system.