What was the retained equity (deficit) - unadjusted for Exit in 2024?
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 2024 was $(1,304,201). This figure reflects the accumulated earnings or losses that Exit has retained in its business over time, without adjustments for interest, depreciation, amortization, and prior year adjustments. A deficit indicates that the company's accumulated losses exceed its accumulated earnings.
For a prospective franchisee, this information is crucial as it provides insight into the financial stability and historical performance of Exit. A significant deficit may raise concerns about the company's ability to support its franchisees, invest in growth, or manage its financial obligations. It's important to note that this figure is 'unadjusted,' meaning it doesn't account for certain non-cash expenses and prior-year adjustments that can provide a clearer picture of operational performance.
It is advisable for potential franchisees to further investigate the reasons behind the deficit, understand the company's plans to address it, and assess whether the adjustments for EBITDA (earnings before interest, taxes, depreciation, and amortization) provide a more favorable view of the company's financial health. Additionally, comparing these figures with those of other similar franchises can offer a broader perspective on Exit's financial standing.