What was the reported retained deficit for Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Reported | As Restated | ||
|---|---|---|---|
| Balance Sheets | |||
| Accounts receivable, net | $ 96,173 | $ 110,383 | |
| Retained deficit | (1,206,094) | (1,191,884) |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the reported retained deficit is detailed in the balance sheets. The document states the retained deficit was reported as ($1,206,094). There is also an 'as restated' figure of ($1,191,884).
It is important to note that the restatement indicates a correction of errors in previously reported financial data. This suggests that the initial accounting might have been inaccurate, and the restated amount provides a more accurate representation of the company's financial position. A prospective franchisee should inquire about the nature of these errors and the reasons for the restatement to fully understand the financial history and stability of Exit.
Understanding the difference between the initially reported and restated amounts, as well as the reasons for these changes, is crucial for making an informed investment decision. This level of scrutiny can help potential franchisees assess the financial transparency and reliability of Exit.