What was the amount of My Salon Suite's accumulated other comprehensive loss as of December 31, 2024?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
8,040 | | Gain on sale of assets | 19,157 | - | | Other expense | (27,188 ) | - | | | | | | Total other income, net | 236,645 | 72,208 | | | | | | Income before taxes | 18,589,396 | 21,512,079 | | | | | | Income tax expense | 8,921,146 | 8,942,992 | | | | | | Net income | $ 9,668,250 | $ 12,569,087 |
Consolidated Statements of Changes in Member's Equity
| Shares | Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |
|---|---|---|---|---|---|---|
| Balance at December 31, 2022 | 1,000 | $ 1,000 | $ 315,400,882 | $ 57,389,683 $ | - $ 372,791,565 | |
| Parent Company transactions - net | - | - | (18,947,698) | - | - | (18,947,698) |
| Share-based compensation | - | - | 1,144,951 | - | - | 1,144,951 |
| Net income | - | - | - | 12,569,087 | - | 12,569,087 |
| Balance at December 31, 2023 | 1,000 | $ 1,000 | $ 297,598,135 | $ 69,958,770 $ | - | $ 367,557,905 |
| Parent Company transactions - net |
Source: Item 17 — (r) of the FDD and Section 13 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law. (FDD pages 230–274)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the accumulated other comprehensive loss as of December 31, 2024, was ($100,769). This figure reflects adjustments related to foreign currency translation.
For a prospective franchisee, this number provides insight into My Salon Suite's financial performance and stability. Accumulated other comprehensive loss represents changes in equity that are not the result of transactions with owners, such as net income or dividends. In this case, the loss is due to adjustments in the value of foreign currency.
It's important to note that this loss is relatively small compared to the overall equity of My Salon Suite, which totaled $442,652,660 as of the same date. Franchisees should consider this information in the context of the company's overall financial health and consult with a financial advisor to understand the implications fully.