What was the total value of My Salon Suite's assets as of December 31, 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
nue as a going concern for a reasonable period of time.
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April 28, 2025
Consolidated Balance Sheets
| As of December 31, | 2024 | 2023 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 3,381,206 | $ 8,047,052 |
| Accounts receivable - net | 5,930,192 | 5,374,191 |
| Current portion of notes receivable - net | 74,080 | 66,427 |
| Amounts due from affiliates | 632,545 | 486,028 |
| Prepaid expenses | 3,809,171 | 1,956,054 |
| Other current assets | 663,352 | 736,544 |
| Total current assets | 14,490,546 | 16,666,296 |
| Fixed assets |
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 company's total assets as of December 31, 2023, amounted to $475,872,065. This figure represents the sum of various asset categories, including current assets, fixed assets, right-of-use assets, other intangibles, goodwill, notes receivable (less current portion), and other assets.
Specifically, the breakdown of assets includes current assets totaling $16,666,296, fixed assets (net) at $12,961,306, and right of use assets (net) valued at $60,777,646. Additionally, other intangibles (net) were valued at $81,990,839, and goodwill (net) accounted for a significant portion at $300,287,335. The notes receivable, less the current portion (net), were $90,091, and other assets totaled $3,098,552.
For a prospective My Salon Suite franchisee, understanding the asset composition and valuation can provide insights into the financial health and stability of the franchisor. A substantial asset base, particularly in categories like goodwill and fixed assets, may indicate a strong brand reputation and significant investments in infrastructure. However, it's crucial to also consider the liabilities and equity to get a comprehensive view of the company's financial position. Franchisees should consult with financial advisors to interpret these figures in the context of their investment decision.