What was the total member's equity for My Salon Suite as of December 31, 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Liabilities | ||
| and | ||
| Member's | ||
| Equity | ||
| Member's equity Common stock, $1.00 par value Authorized shares - 100,000, issued and outstanding shares - 1,000 Additional paid-in capital Retained earnings | 1,000 297,598,135 69,958,770 | 1,000 315,400,882 57,389,683 |
| Total | 367,557,905 | 372,791,565 |
| member's | ||
| equity | ||
| Total | $ 475,872,065 | $ 458,127,793 |
| liabilities | ||
| and | ||
| member's | ||
| equity |
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 as of December 31, 2023, was $367,557,905. This figure represents the ownership stake of the members in the company. It is calculated by adding common stock, additional paid-in capital, and retained earnings.
Specifically, the member's equity consists of $1,000 in common stock, $297,598,135 in additional paid-in capital, and $69,958,770 in retained earnings. Additional paid-in capital represents the amount by which the money received from investors exceeds the par value of the stock. Retained earnings are the accumulated net earnings of the company that have not been distributed as dividends.
For a prospective franchisee, understanding the member's equity can provide insight into the financial stability and overall health of My Salon Suite. A higher member's equity generally indicates a stronger financial position, which can be reassuring for franchisees who are investing in the brand. It is also worth noting that the total liabilities and member's equity as of December 31, 2023, was $475,872,065.
It's important to consider this figure in conjunction with other financial metrics, such as total liabilities and revenue, to get a comprehensive view of My Salon Suite's financial standing. Reviewing these figures over time, as the FDD provides for 2022 as well, can reveal trends and provide a more informed perspective on the company's financial performance.