What was the total number of Gokhale Method common stock voting shares at the beginning of 2022?
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 FDD, Gokhale Method had 500 common stock voting shares at the beginning of 2022. This information is detailed in the Item 22 section of the FDD, which covers contracts and financial statements related to the company's stock. The table outlines the balance of common stock voting shares, common stock non-voting shares, and common stock amount, along with additional paid-in capital, retained earnings, and total stockholders' equity.
For a prospective franchisee, understanding the equity structure of Gokhale Method can provide insights into the financial stability and ownership of the company. Knowing the number of voting shares helps assess the control and decision-making power within the organization. The presence of both voting and non-voting shares is also relevant, as it can indicate different levels of ownership and influence.
The FDD also indicates that Gokhale Method had 1,000 voting shares authorized, with 500 shares issued and outstanding, with a par value of $0.01. There were also 1,000 non-voting shares authorized, but no shares issued and outstanding. This information is crucial for potential investors or franchisees to understand the capitalization and equity structure of the company, as well as the rights and privileges associated with different classes of stock.
Reviewing the changes in equity over time, as presented in the provided tables, can further inform a franchisee about the financial performance and management of Gokhale Method. Monitoring retained earnings, additional paid-in capital, and overall stockholders' equity can provide a comprehensive view of the company's financial health and its ability to sustain and grow its operations.