What was the shareholders' equity for Fast Fix Jewelry And Watch Repairs in 2022?
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 | _ | (1,530,331) | (624,001) |
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 shareholders' equity as of December 31, 2022, was approximately ($624,001). This figure is derived from the sum of common stock, additional paid-in capital, and accumulated deficit. Specifically, the common stock was $100, additional paid-in capital was $906,230, and the accumulated deficit was ($1,530,331).
For a prospective franchisee, this indicates the net asset value of Fast Fix Jewelry And Watch Repairs at the end of 2022. A negative shareholders' equity suggests that the company's liabilities exceeded its assets at that time. This is a critical piece of financial information that potential franchisees should consider, as it reflects the financial health and stability of the franchisor.
It is important for potential franchisees to investigate the reasons behind the accumulated deficit and to understand how Fast Fix Jewelry And Watch Repairs plans to improve its financial position. Reviewing subsequent financial statements and asking detailed questions about the company's financial strategies are essential steps in the due diligence process. This information, combined with other factors, can help a franchisee make an informed decision about investing in the franchise.