What was the total member's equity balance for My Salon Suite as of December 31, 2022?
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 | |----------------------------------------------------------------------
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 total member's equity as of December 31, 2022, was $372,791,565. This figure represents the net worth of My Salon Suite at that specific point in time. It is calculated by combining several components: common stock valued at $1,000, additional paid-in capital of $315,400,882, and retained earnings of $57,389,683.
Member's equity is a critical indicator of a company's financial health. A higher equity balance generally suggests greater financial stability and a stronger ability to meet its obligations. For a prospective My Salon Suite franchisee, this indicates the financial foundation of the franchise system. It reflects the cumulative investments and profits retained within the business over time.
It's important to note that this figure can fluctuate due to various factors, including net income, parent company transactions, and other comprehensive income or losses. Reviewing the changes in equity from year to year, as presented in the provided table, can provide a more comprehensive understanding of the company's financial performance and trends. Franchisees should monitor these trends to assess the ongoing financial health and stability of My Salon Suite.