What is the authorized number of non-voting shares for Gokhale Method?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| Common Stock Voting Shares | Common Stock Non-Voting Shares | Common Stock Amount | itional paid n capital | etained arnings | Total ockholders' Equity | ||
|---|---|---|---|---|---|---|---|
| Balance at January 1, 2022 | 500 | $ | 5 | $ 100,657 | $ 9,819 | $ 110,481 | |
| Net loss | - | - | (1,135) | (1,135) | |||
| Balance at December 31, 2022 | 500 | - | $ | 5 | $ 1 |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the company's balance sheet information includes details about common stock, including voting and non-voting shares. As of January 1, 2022, there were 500 common stock voting shares and no common stock non-voting shares. This remained the same as of December 31, 2022.
This information is relevant to potential franchisees as it provides insight into the company's equity structure. While franchisees do not directly purchase these shares, understanding the ownership structure can offer a glimpse into the financial organization of Gokhale Method.
The FDD also presents data from prior years. The balance sheet at January 1, 2020, shows 200 voting shares and 1 non-voting share. By December 31, 2020, the number of voting shares increased to 300, and the non-voting shares were not specified. The balance sheet at December 31, 2021, shows 200 voting shares and no specification of non-voting shares. This historical data provides a view of the changes in the company's equity over time.
Prospective franchisees should consider this information as part of their overall due diligence, keeping in mind that the share structure reflects the internal financial organization of Gokhale Method and does not directly impact the operations of a franchise. However, understanding the financial stability and structure of the franchisor is a key aspect of evaluating the franchise opportunity.