What was the total shareholder's equity for Crepe De Licious in the earlier year presented in the table?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Shareholder's equity | ||
|---|---|---|
| Common stock, $1 par value; 100 shares authorized, | ||
| issued and outstanding | 100 | 100 |
| Additional paid-in capital | 900 | 9 00 |
| Retained earnings | 264,827 | 218,015 |
| Total shareholder's equity | 265,827 | 219,015 |
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the total shareholder's equity for the earlier year presented, which is not specified but implied to be 2023 based on the context of the provided financial statements, was $219,015. This figure represents the sum of common stock, additional paid-in capital, and retained earnings. The common stock was valued at $100, additional paid-in capital at $900, and retained earnings at $218,015.
For a prospective franchisee, shareholder's equity is an indicator of the company's net worth. A higher shareholder's equity generally suggests a more financially stable company. However, it is essential to consider this figure in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of Crepe De Licious's financial health.
It's also important to note that these figures are based on an audit report. While an audit provides a level of assurance, it is still crucial for potential franchisees to conduct their own due diligence, possibly including consulting with a financial advisor, to assess the financial risks and opportunities associated with investing in a Crepe De Licious franchise. Understanding the components of shareholder's equity and how they have changed over time can provide valuable insights into the company's financial performance and stability.