What is the par value of each common share of stock for Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
6. ADVERTISING EXPENSES
Advertising costs for the years ended December 31, 2023 and 2022 were $54,835 and $69,863 respectively. These costs were expensed as incurred.
7. STOCKHOLDERS' EQUITY
Under the articles of incorporation, the total number of common shares of stock that the Co
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the total number of common shares the corporation is authorized to issue is 1,000 shares, each with a par value of $1. The total issued and outstanding amount for these shares is $1,000. This indicates that Deck Medic has a relatively simple capital structure with a fixed number of authorized shares and a low par value, which is a common practice for smaller corporations.
For a prospective franchisee, this information provides insight into the company's equity structure. The par value of a stock is the nominal value assigned to it when it is issued. While it doesn't directly impact the day-to-day operations of a franchise, it is a fundamental aspect of corporate finance. The fact that Deck Medic has a low par value suggests that the company's initial capitalization was modest, and it may have relied on other sources of funding, such as debt or retained earnings, to grow the business.
It's important to note that the par value has little relevance to the market value of the stock. The market value is determined by investor demand and the company's performance. However, understanding the par value can help a franchisee assess the overall financial picture of Deck Medic and its approach to capitalization. This information, combined with other financial data in the FDD, can contribute to a more informed investment decision.