What was the balance as of December 31, 2024, for My Salon Suite?
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 balance as of December 31, 2024, is detailed in the equity section. The total balance at December 31, 2024, was $442,652,660. This figure is derived from common stock amount of $1,000, additional paid-in capital of $363,125,409, retained earnings of $79,627,020, and an accumulated other comprehensive loss of $100,769.
For a prospective My Salon Suite franchisee, understanding the franchisor's financial position is crucial. A strong balance sheet can indicate financial stability and the ability to support franchisees. Reviewing the components of equity, such as retained earnings and paid-in capital, can provide insights into the company's profitability and how it has been funded.
It's important to note that this balance reflects the overall financial position of My Salon Suite and its parent company. Franchisees should also consider other financial metrics and disclosures in the FDD, such as revenue, expenses, and liabilities, to gain a comprehensive understanding of the franchisor's financial health. Consulting with a financial advisor is recommended to interpret these figures in the context of the franchise opportunity.