What was the total amount of Monicals Pizza's retained earnings as of December 31, 2022?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
-
easury Stock Retained Earnings Total Balances at January 1, 2022 390,950 $ 2,233,048 $ 12,100 $ 16,108,885 $ 18,354,033 Transition adjustment for adoption of ASU 2016-02 - - - 29,385 29,385 Net income - - - 894,285 894,285 Issuance of common stock 300 24,729 - - 24,729 Distributions to owners - - - (4,364,263) (4,364,263)
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the company's retained earnings as of January 1, 2022, were $16,108,885. After a transition adjustment of $29,385 and net income of $894,285, the retained earnings as of December 31, 2022, totaled $17,032,555.
Retained earnings represent the cumulative net income of Monicals Pizza that has been retained in the business rather than distributed to owners. This figure is a key indicator of the company's financial health and profitability. A strong retained earnings balance suggests that the company has been consistently profitable and has effectively managed its earnings.
For a prospective Monicals Pizza franchisee, understanding the retained earnings is crucial. It provides insight into the financial stability and long-term viability of the franchisor. A healthy retained earnings balance can give franchisees confidence that Monicals Pizza is well-positioned to support its franchisees and invest in the growth of the brand. Conversely, a low or declining retained earnings balance might raise concerns about the franchisor's financial management and ability to provide adequate support.