What was the total member's equity for My Salon Suite at December 31, 2021?
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 | $ 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 total member's equity at December 31, 2021, was $365,798,386. This figure represents the sum of common stock, additional paid-in capital, and retained earnings at that specific point in time. Member's equity is a key indicator of the company's financial health, representing the ownership stake of the members in the company's assets after deducting liabilities.
Specifically, the member's equity is calculated from the balance sheet and reflects the initial investments by members (common stock and additional paid-in capital) along with accumulated profits (retained earnings). For My Salon Suite, the common stock was valued at $1,000, additional paid-in capital was $326,062,998, and retained earnings amounted to $39,734,388 at the end of 2021. These components combined provide a comprehensive view of the financial foundation of My Salon Suite.
For a prospective franchisee, understanding the trend in member's equity is crucial. A growing member's equity generally indicates that the company is profitable and financially stable. However, it's also important to consider factors that can influence this number, such as parent company advances and share-based compensation, which can impact the additional paid-in capital. Therefore, a franchisee should investigate the reasons behind changes in equity to assess the long-term financial viability of My Salon Suite.