What was the common equity for Fast Fix Jewelry And Watch Repairs in 2023?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
2,273 | | | | Income before income tax expense | | 688,143 | | 561,715 | | | | Income tax expense | | 330,787 | | 282,663 | | | | Net income | $ | 357,356 | $ | 279,052 | | |
| Commo | n Stock | Α | dditional | A | ccumulated | Sto | ckholders' | ||
|---|---|---|---|---|---|---|---|---|---|
| Shares | Ar | nount | Paid | d-In Capital | _ | Deficit | Equity | ||
| Balance, January 1, 2023 | 978,781 | $ | 100 | $ | 906,230 | $ | (1,530,331) | $ | (624,001) |
| Net income | 279,052 | 279,052 | |||||||
| Balance, December 31, 2023 | 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 common stock equity as of December 31, 2023, was a deficit of ($344,949). This figure represents the cumulative investment of the stockholders in the company, including common stock shares, paid-in capital, and accumulated deficit. The common stock shares were 978,781 with a value of $100, and additional paid-in capital was $906,230. The accumulated deficit was ($1,251,279).
For a prospective franchisee, this indicates the financial health of Fast Fix Jewelry And Watch Repairs. A negative stockholders' equity suggests that the company's liabilities exceed its assets. This could be a point of concern, as it may reflect past losses or financial strain. However, it is important to consider this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive understanding of the company's financial stability.
It is also important to note that the net income for 2023 was $279,052, which contributed to reducing the accumulated deficit from the previous year. This shows a positive trend in the company's profitability, which could be a sign of improvement. A potential franchisee should investigate the reasons behind the accumulated deficit and the strategies Fast Fix Jewelry And Watch Repairs is implementing to improve its financial position. Consulting with a financial advisor to analyze these financial statements is advisable.