What was the retained earnings at the beginning of the year for Learningrx in the later of the two years presented?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | ||
|---|---|---|---|
| Retained Earnings, Beginning of Year | $ 7 66,025 | $ 8 21,066 | |
| Net Income (Loss) | 7,181 | (55,041) | |
| Retained Earnings, End of Year | $ 7 73,206 | $ 7 66,025 |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the company's statements of retained earnings are provided for the years ended September 30, 2023, and 2022. The retained earnings at the beginning of the year (October 1, 2022) for the year ended September 30, 2023, was $766,025.
Retained earnings represent the accumulated profits of Learningrx that have not been distributed as dividends to stockholders. It's a key indicator of the company's financial health and its ability to reinvest in the business. A higher retained earnings balance generally suggests that the company has been profitable and has effectively managed its earnings.
For a prospective Learningrx franchisee, understanding the franchisor's retained earnings can provide insights into the financial stability and growth potential of the company. It demonstrates the franchisor's capacity to support its franchisees and invest in the Learningrx system. Reviewing these figures in the FDD helps potential franchisees assess the overall financial strength of Learningrx before making an investment.