What was the accumulated deficit for Fast Fix Jewelry And Watch Repairs as of January 1, 2023?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Income before income tax expense | | 561,715 | | 1,509,540 | | | Income tax expense | P. 1 | (282,663) | | (497,341) | | | Net income | $ | 279,052 | $ | 1,012,199 | |
| Commo | on Stock | А | dditional | Α | ccumulated | St | ockholders' | ||
|---|---|---|---|---|---|---|---|---|---|
| Shares | Ar | nount | Paid | d-In Capital | _ | Deficit | _ | Deficit | |
| Balance, January 1, 2022 Net income | 978,781 | $ | 100 | $ | 906,230 | $ | (2,542,530) 1,012,199 | $ | (1,636,200) 1,012,199 |
| Balance, December 31, 2022 | 978,781 | 100 | 906,230 | _ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs's 2025 Franchise Disclosure Document, the accumulated deficit as of January 1, 2022, was approximately $2,542,530. The accumulated deficit as of December 31, 2022, was approximately $1,530,331. The net income for 2023 was $279,052, resulting in an accumulated deficit of approximately $1,251,279 as of December 31, 2023.
An accumulated deficit represents the total losses and deficits that Fast Fix Jewelry And Watch Repairs has incurred over its lifetime, offset by any profits. It is essentially the opposite of retained earnings. The decrease in the accumulated deficit from January 1, 2022, to December 31, 2023, indicates that the company became more profitable during that time.
For a prospective franchisee, a large accumulated deficit could signal financial instability or past difficulties within the company. However, the fact that the deficit decreased significantly over the period from 2022 to 2023 could be seen as a positive sign, indicating improved financial performance. It would be prudent for a potential franchisee to investigate the reasons behind the deficit and the strategies Fast Fix Jewelry And Watch Repairs is implementing to improve its financial position.