What was the retained equity (deficit) - unadjusted for Exit in 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Franchised offices: | |||
| Opened/acquired | 5 | 4 | 6 |
| Closed | (5) | (5) | (2) |
| In operation as of December 31 | 88 | 88 | 89 December 31 |
| 2024 | 2023 | 2022 | |
| Retained equity (deficit) - unadjusted | $ (1,304,201) | $ (1,191,884) | |
| Plus: | |||
| Adjustment for interest expense | 60,162 | 61,867 | 91,752 |
| Adjustment for depreciation expense | 2,068 | 2,068 | 1,206 |
| Adjustment for amortization expense | 117,647 | 268,910 | 354,861 |
| Prior year accumulated adjustments | 1,169,215 | 836,370 | 388,551 |
| Total adjustments for EBITDA | 1,349,092 | 1,169,215 | 836,370 |
| Accumulated retained equity (deficit) | |||
| - adjusted for EBITDA | $ 44,891 | $ (22,669) |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the retained equity (deficit) - unadjusted for 2022 was reported as $(1,191,884). This figure represents the accumulated earnings or losses of the company that have not been distributed to shareholders as of the end of 2022. A deficit indicates that the company's accumulated losses exceed its accumulated profits.
It is important to note that this unadjusted figure does not reflect certain financial adjustments such as interest expense, depreciation expense, and amortization expense. These adjustments, when added back, provide a different view of the company's financial performance, as shown in the adjusted figures. The FDD provides both unadjusted and adjusted figures to give a more comprehensive understanding of the company's financial position.
Prospective franchisees should carefully consider both the unadjusted and adjusted retained equity (deficit) figures, along with other financial metrics, to assess the financial health and stability of Exit. Understanding the factors that contribute to the deficit, as well as the adjustments made for EBITDA, is crucial for making an informed investment decision. Consulting with a financial advisor is recommended to fully understand the implications of these figures.