What was the amount of the distribution to the parent company from Precision Door Service in 2022?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------------------------------------------------------------------------------------|--------------------|--------------|------------------------|--------------------------------------|---------------------------------|---------------------------------------|----------------------------------------------| | Balance at December 31, 2022 | 100 | $ | - | 2,420,959 | $ (50,587) | $ (51,483) | $ 2,318
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to the 2025 FDD, Precision Door Service's distribution to its parent company in 2022 was $324,718. This figure represents the amount of money Precision Door Service distributed to its parent organization during that fiscal year, impacting the company's overall equity.
For a prospective franchisee, this indicates the financial relationship between Precision Door Service and its parent company. Distributions to the parent company can affect the resources available for reinvestment in the franchise system, such as technology upgrades, marketing initiatives, or franchisee support programs. A high distribution amount might suggest that a significant portion of profits is being directed to the parent company rather than being reinvested in the Precision Door Service franchise network.
It's important for potential franchisees to consider these distributions in the context of the company's overall financial health and growth strategy. While distributions are a normal part of corporate financial management, understanding the magnitude and frequency of these distributions can provide insights into the long-term sustainability and support that Precision Door Service franchisees can expect.