What was the retained earnings balance for My Salon Suite at December 31, 2022?
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 retained earnings balance at December 31, 2022, was $57,389,683. This figure represents the accumulated profits of My Salon Suite that have been retained in the business rather than distributed as dividends to owners. Retained earnings are a key indicator of a company's financial health and its ability to reinvest in future growth.
In addition to the retained earnings, the balance sheet also shows common stock valued at $1,000, and additional paid-in capital of $315,400,882 at the end of 2022. These components, along with the retained earnings, contribute to the total member's equity of $372,791,565. Understanding these figures can provide a prospective franchisee with insights into the overall capitalization and financial structure of My Salon Suite.
It's important to note that the parent company advances and share-based compensation also impact the equity. Specifically, parent company advances resulted in a reduction of $18,947,698, while share-based compensation added $1,144,951 to the equity. These adjustments reflect the financial transactions between My Salon Suite and its parent company, as well as the impact of equity-based compensation plans for employees. Reviewing these details helps to provide a more complete picture of the company's financial position.