What was the unadjusted retained equity (deficit) 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 unadjusted retained equity (deficit) for 2024 was $(1,304,201). The FDD also provides figures for 2022, which was $(1,191,884).
It is important to note that these figures are unadjusted. The document further provides adjustments for interest expense, depreciation expense, amortization expense, and prior year accumulated adjustments to calculate an adjusted EBITDA figure. For 2024, the total adjustments for EBITDA amounted to $1,349,092, resulting in an accumulated retained equity (deficit) adjusted for EBITDA of $44,891.
Prospective franchisees should understand the difference between the unadjusted and adjusted figures. The unadjusted retained equity (deficit) reflects the raw financial performance, while the adjusted figure provides a view of profitability before considering certain expenses. Reviewing both figures, along with the specific adjustments, can offer a more comprehensive understanding of Exit's financial health.