What was the total stockholders' equity for Learningrx in the earlier reported year?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Stockholder's Equity | |||
|---|---|---|---|
| Common stock, no par value; 1,000 shares | |||
| authorized, issued, and outstanding | 50,000 | 50,000 | |
| Retained earnings | 773,206 | 766,026 | |
| Total Stockholders' Equity | 823,206 | 816,026 | |
| Total Liabilities and Stockholders' Equity | $ 1,193,149 | $ 1,263,576 |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the total stockholders' equity for the company in 2022 was $816,026. The stockholders' equity is composed of common stock with a value of $50,000 and retained earnings of $766,026.
Stockholders' equity represents the residual value of Learningrx's assets after deducting liabilities. It is essentially the book value of the company from the perspective of its shareholders. A positive and growing stockholders' equity generally indicates financial stability and profitability, which can be a reassuring sign for potential franchisees.
For a prospective Learningrx franchisee, understanding the franchisor's equity is crucial as it provides insights into the financial health and stability of the company. A strong equity position suggests that Learningrx has a solid financial foundation, which can support its franchisees through various economic cycles and provide resources for ongoing development and support. Reviewing these figures over several years, if available, can reveal trends in the company's financial performance and help assess the long-term viability of the franchise system.