What was the Retained Earnings balance for My Salon Suite as of 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 as of 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 component of a company's equity and reflect its financial health and ability to reinvest in future growth. The FDD also shows the Retained Earnings balance as of December 31, 2021, was $39,734,388 and as of December 31, 2023, was $69,958,770.
For a prospective My Salon Suite franchisee, understanding the franchisor's retained earnings can provide insights into the financial stability and profitability of the company. A healthy retained earnings balance suggests that the franchisor is generating profits and has the resources to support its franchisees. This can be an important consideration when evaluating the overall strength and potential of the franchise opportunity.
However, it's important to note that retained earnings are just one aspect of a company's financial performance. A prospective franchisee should also consider other factors such as revenue growth, debt levels, and cash flow when assessing the financial health of My Salon Suite. Consulting with a financial advisor can help potential franchisees interpret these financial statements and make informed decisions about investing in the franchise.