What was the amount of additional paid-in capital for My Salon Suite at December 31, 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2,569,087 | $ 17,655,295 |
|---|
Consolidated Statements of Changes in Member's Equity
| Common Shares | stock | Amount | Additional Paid-in Capital | Retained Earnings | Total | |
|---|---|---|---|---|---|---|
| Balance | 1,000 | $ | 1,000 | $ 326,062,998 | $ 39,734,388 | $ 365,798,386 |
| at | ||||||
| December | ||||||
| 31, | ||||||
| 2021 | ||||||
| Parent | - | - | (11,618,027) | - | (11,618,027) | |
| Company | ||||||
| advances | ||||||
| - | ||||||
| net | ||||||
| Share-based | - | - | 955,911 | - | 955,911 | |
| compensation | ||||||
| Net income | - | - | - | 17,655,295 | 17,655,295 | |
| Balance | 1,000 | $ | 1,000 | $ 315,400,882 | $ 57,389,683 | $ 372,791,565 |
| at | ||||||
| December | ||||||
| 31, | ||||||
| 2022 | ||||||
| Parent | - | - | (18,947,698) | - | (18,947,698) | |
| Company | ||||||
| advances | ||||||
| - | ||||||
| net | ||||||
| Share-based | - | - | 1,144,951 | - | 1,144,951 | |
| compensation | ||||||
| Net income | - | - | - | 12,569,087 | 12,569,087 | |
| Balance | 1,000 | $ | 1,000 | $ 297,598,135 | $ 69,958,770 | $ 36 |
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the additional paid-in capital as of December 31, 2023, was $297,598,135. This figure is a component of the total member's equity, which amounted to $367,557,905 on the same date. This indicates the cumulative investment made by members (shareholders) beyond the par value of the common stock. The common stock itself is valued at $1.00 par value, with 1,000 shares issued and outstanding, totaling $1,000.
Additional paid-in capital represents the excess amount investors paid over the par value of the stock when the shares were initially issued. It's a key indicator of investor confidence and the perceived value of My Salon Suite. A substantial additional paid-in capital can provide the company with resources for expansion, acquisitions, or debt reduction.
For a prospective franchisee, this information provides insight into the financial structure and historical investment in My Salon Suite. While a high additional paid-in capital can be seen as a positive sign of financial health, potential franchisees should also consider how the company has utilized these funds and whether the investments have translated into brand growth and franchisee support. Reviewing trends in additional paid-in capital over several years, alongside retained earnings, can offer a more comprehensive view of the company's financial management and performance.