What was the net loss for Precision Door Service in 2024?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Shares | Amount | Capital | Deficit | Income (Loss) | Total | ||
|---|---|---|---|---|---|---|---|
| Balance at December 31, 2022 | 100 | $ | - | 2,420,959 | $ (50,587) | $ (51,483) | $ 2,318,889 |
| Adoption of accounting principle | - | $ - | - | 258 | - | 258 | |
| Distribution to parent | - | - | (324,718) | - | - | (324,718) | |
| Equity-based compensation | - | - | 4,194 | - | - | 4,194 | |
| Foreign currency translation adjustment Net loss | - - | - - | - - | - (439,076) | 8,527 - | 8,527 (439,076) | |
| Balance at December 31, 2023 | 100 | $ | - $ | 2,100,435 | (489,405) | (42,956) | 1,568,074 |
| Contribution to Equity | - | - | 575 | - | - | 575 | |
| Distribution to parent | - | - | (170,204) | - | - | (170,204) | |
| Equity-based compensation | - | - | 3,130 | - | - | 3,130 | |
| Foreign currency translation adjustment Net loss | - - | - - | - - | - (39,118) | (4,278) - | (4,278) (39,118) | |
| Balance at | 100 | $ | - | 1,933,936 | $ (528,523) | $ (47,234) | $ 1,358,179 |
| December 31, 2024 | $ |
**Consolidated Statement of Cash Flows ($000'
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 ended December 31, 2024, was approximately $39,118. This figure is derived from the consolidated statements of operations, which detail the revenues, expenses, and losses of the company. It's important to note that this net loss is a significant decrease compared to the net loss of $439,076 in the previous year, 2023.
When evaluating this information, a prospective Precision Door Service franchisee should consider the factors contributing to the net loss, such as operating expenses, interest expenses, and any non-recurring items. While a net loss might raise concerns, the substantial decrease from the previous year could indicate improvements in the company's financial performance. It's also worth investigating how these losses might affect the franchisor's ability to support its franchisees and invest in the brand.
Furthermore, it's crucial to compare these figures with industry benchmarks and the financial performance of other franchise systems. Understanding the reasons behind the net loss and the strategies Precision Door Service is implementing to improve profitability is essential for making an informed investment decision. Reviewing several years of financial statements, not just a single year, will provide a more comprehensive understanding of the financial trends and stability of the franchise system.