What was the foreign currency translation adjustment for Dq Treat in 2023?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Net carrying value—January 1 | $ 92,214 | $ 92,162 |
| Foreign currency translation | (191) | 52 |
| Net carrying value—December 31 | $ 92,023 | $ 92,214 |
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the foreign currency translation adjustment in 2023 was $52. This figure represents the impact of currency fluctuations on the net carrying value of the company's assets and liabilities held in foreign currencies. The net carrying value at the beginning of 2023 was $92,162, and after the foreign currency translation adjustment, it increased to $92,214 by the end of the year.
For a prospective Dq Treat franchisee, understanding foreign currency translation is important because it reflects the financial impact of Dq Treat's international operations. While individual franchisees typically operate within a single country, the overall financial health of the Dq Treat brand can be influenced by these adjustments. This is particularly relevant if Dq Treat has a significant presence in countries with volatile currencies.
The foreign currency translation adjustment is a component of comprehensive income, which provides a broader view of Dq Treat's financial performance beyond just net income. In 2023, the net income was $93,884, and the comprehensive income, which includes the foreign currency translation adjustment, was $93,865. This indicates that the foreign currency translation had a slightly negative impact on the overall comprehensive income for that year.
It's worth noting that these adjustments are related to Dq Treat's investment in its Canadian subsidiary, as stated in the FDD. Fluctuations in the Canadian dollar relative to the U.S. dollar would directly affect these translation adjustments. Franchisees should be aware of these factors as they contribute to the overall financial picture of the Dq Treat franchise system.