What was the total distribution to the parent company from Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Shares | Amount | Capital | Deficit | Income | Total | |
|---|---|---|---|---|---|---|
| (Loss) | ||||||
| Balance – | 100 | $ - | $ 2,576,318 | (14,841) $ | (6,222) $ | 2,555,255 |
| December 31, 2021 | ||||||
| Distribution to parent | - | - | (431,965) | - | - | (431,965) |
| Equity contribution | - | - | 241,794 | - | - | 241,794 |
| Equity contribution for acquisitions | - | - | 31,398 | - | - | 31,398 |
| Equity-based compensation | - | - | 3,414 | - | - | 3,414 |
| Foreign currency translation adjustment | - | - | - | - | (45,261) | (45,261) |
| Net loss | - | - | - | (35,746) | - | (35,746) |
| Balance – | 100 | $ - | $ 2,420,959 | $ (50,587) | $ (51,483) $ | 2,318,889 |
| December 31, 2022 | ||||||
| Adoption |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the total distribution to the parent company in 2023 was $324,718. This distribution represents a transfer of funds from Precision Door Service to its parent company, Neighborly.
For a prospective franchisee, this figure indicates the financial relationship between Precision Door Service and its parent company. It demonstrates that a significant portion of the company's capital can be distributed to the parent entity, which could impact the resources available for reinvestment or operational improvements within Precision Door Service itself. Franchisees should consider this when evaluating the financial stability and long-term growth potential of the franchise system.
It is important to note that such distributions are a common practice in franchise organizations where the parent company provides various support services and manages the overall brand. However, franchisees should assess whether the level of distribution impacts the support and resources they receive from the franchisor. Understanding the parent company's financial strategy and its impact on Precision Door Service is crucial for making an informed investment decision.