What was the deficit for Precision Door Service at the end of December 31, 2024?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| | (528,523) | | (489,405) |
| Accumulated other comprehensive loss | | (47,234) | | (42,956) | | Total Stockholder's Equity | | 1,358,179 | | 1,568,074 | | Total Liabilities and Stockholder's Equity | $ | 3,336,716 | $ | 3,459,395 |
Consolidated Statements of Operations and Comprehensive Income (Loss) ($000's)
| Year Ended December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Revenues and income Franchise service fees Franchise sales fees Sales of products and services Advertising and promotional fund revenue Other revenue | $ 208,277 35,122 282,737 60,159 39,387 | $ | 194,731 38,441 288,146 53,320 39,026 | |
| Total revenues and income | 625,682 | 613,664 | ||
| Cost of products and services | 174,140 | 169,627 | ||
| Gross Profit | 451,542 | 444,037 | ||
| Selling expense General and administrative expense Advertising and promotional fund expense Equity-based compensation expense Depreciation and amortization Management and board fees and expenses Loss on impairment of goodwill and tradenames Credit losses Operating Income (Loss) Interest expense | 26,173 206,402 61,482 3,130 123,676 3,650 - 3,810 23,219 70,278 | 26,179 196,985 58,124 4,194 116,929 4,638 428,286 2,812 (394,110) 68,756 | ||
| Loss Before Income Taxes | (47,059) | (462,866) | ||
| Income tax | (7,941) | (23,790) | ||
| benefit | ||||
| Net Loss | (39,118) | (439,0 |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the net loss for the year ending December 31, 2024, was $(39,118). The total other comprehensive income/loss was $(3,208). Therefore, the comprehensive loss for Precision Door Service was $(42,326) at the end of 2024.
For a prospective franchisee, this indicates that Precision Door Service experienced a net loss in 2024. While the company generated revenues and income from various sources such as franchise service fees ($208,277), franchise sales fees ($35,122), sales of products and services ($282,737), advertising and promotional fund revenue ($60,159), and other revenue ($39,387) totaling $625,682, the cost of products and services ($174,140) and other expenses resulted in a net loss.
These expenses included selling expenses ($26,173), general and administrative expenses ($206,402), advertising and promotional fund expenses ($61,482), equity-based compensation expenses ($3,130), depreciation and amortization ($123,676), management and board fees and expenses ($3,650), and credit losses ($3,810). Interest expenses totaled $70,278. The loss before income taxes was $(47,059), but an income tax benefit of $(7,941) reduced the net loss to $(39,118).
It is important to note that Precision Door Service's financial performance in a single year may not be indicative of its long-term viability or the potential success of a franchise. Prospective franchisees should carefully review the entire financial statement, including trends over multiple years, and consider consulting with a financial advisor to assess the risks and opportunities associated with investing in a Precision Door Service franchise.