What is the par value of the non-voting shares for Gokhale Method?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
22
| 2021 | 2020 | |||
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | S | 120,520 | 5 | 112,072 |
| Accounts receivable, net | 4,941 | 3,344 | ||
| Other current assets | - | - | 428 | |
| TOTAL ASSETS | S | 125,461 | S | 115,844 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable | 5 | 8,652 | $ | 6,731 |
| Deferred revenue | 4,825 | 13,248 | ||
| Payable to Teachers | 1,365 | |||
| Other current liabilities | - | 138 | _ | 138 |
| TOTAL LIABILITIES | _ | 14,980 | 1 | 20,117 |
| STOCKHOLDERS' EQUITY | ||||
| Common stock (1,000 voting shares anthorized, 500 shares issued and | 5 | 5 | ||
| outstanding, $0.01 par value) | ||||
| Common stock (1,000 non-voting shares authorized, no shares issued | ||||
| and outstanding, $0.01 par value) | ||||
| Additional Paid in Capital | 74,995 | 74,995 | ||
| Stockholder's contribution | 25,662 | 25,662 | ||
| Retained earnings (accumulated deficit) | _ | 9,819 | (4,935) | |
| Total stockholders' equity | 110,481 | 95,727 | ||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUI |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the par value for non-voting shares is $0.01. This is based on the common stock details provided in the balance sheets. Specifically, the document mentions that there are 1,000 non-voting shares authorized, but no shares have been issued or are outstanding.
The par value of a stock is the nominal value assigned to a share of stock when it is first authorized and issued by the company. It is the minimum price for which the company can sell the stock. In the case of Gokhale Method, the par value for both voting and non-voting shares is the same, indicating a standardized initial valuation for these shares.
For a prospective franchisee, understanding the par value of shares might not have immediate operational implications. However, it provides insight into the company's capitalization structure and how equity is distributed. It is essential to note that while the par value is $0.01, the actual value and trading price of the stock in the market (if it were publicly traded) could be significantly different, influenced by factors such as company performance, market conditions, and investor sentiment.