What was the common equity for Fast Fix Jewelry And Watch Repairs in 2024?
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' 2025 Franchise Disclosure Document, the common stock equity as of December 31, 2024, was $12,407. The FDD provides a breakdown of the changes in stockholders' equity from January 1, 2023, through December 31, 2024. This includes the common stock shares, amount, additional paid-in capital, accumulated deficit, and total stockholders' equity.
For a prospective franchisee, this figure provides a snapshot of the company's equity position at the end of 2024. Equity represents the owner's stake in the company, calculated as assets minus liabilities. A positive equity balance suggests that the company's assets exceed its liabilities, which is generally a sign of financial health. However, it's essential to consider this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive understanding of the company's financial stability.
The table also shows the accumulated deficit was ($893,923) as of December 31, 2024. This deficit is a cumulative total of net losses over the company's history. Despite the accumulated deficit, the company managed to have a positive total stockholders' equity due to the additional paid-in capital. The net income for 2024 was $357,356, which contributed to reducing the accumulated deficit and increasing the overall equity.
It is important for potential franchisees to review these figures carefully and understand the context behind them. Consulting with a financial advisor to analyze these financial statements and understand the implications for the franchise's financial health is advisable.