What was the total member's equity for Precision Door Service as of December 31, 2022?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
come | $ 166,470 | 138,944 | | Other comprehensive income/(loss) | | | | Foreign currency translation adjustment | 18,104 | (22,873) | | Comprehensive income | $ 184,574 | 116,071 |
Combined Statements of Changes in Member's Equity ($000's)
| Member's Equity | |
|---|---|
| Balance – | $ 3,060,380 |
| December 31, 2021 | |
| Equity contribution | 116,670 |
| Distributions | (202,999) |
| Net income | 138,944 |
| Foreign currency translation adjustment | (22,873) |
| Balance – | $ 3,090,123 |
| December 31, 2022 | |
| (Restated) |
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 member's equity as of December 31, 2022, was $3,090,123. This figure represents the net worth of the company attributable to its members or owners at that specific point in time. It is calculated by subtracting total liabilities from total assets, reflecting the residual value of ownership in the company. This number is restated in the document.
Member's equity is a critical indicator of a company's financial health and stability. For a prospective Precision Door Service franchisee, a higher member's equity generally suggests a more financially sound franchisor. This can translate to a greater ability for the franchisor to support its franchisees through training, marketing, and ongoing operational assistance. It also indicates a stronger capacity to invest in the brand's future growth and development.
It is important to note that this figure is just one component of a comprehensive financial analysis. A prospective franchisee should also consider other factors such as revenue trends, profitability, debt levels, and cash flow when evaluating the financial strength of Precision Door Service. Additionally, understanding the components that contribute to changes in member's equity, such as equity contributions, distributions, net income, and foreign currency adjustments, provides a more complete picture of the company's financial performance.
While the FDD provides this snapshot of member's equity, prospective franchisees should seek professional financial advice to fully interpret these figures in the context of their own investment goals and risk tolerance. Reviewing several years of financial statements, if available, can also provide valuable insights into the long-term financial trends of Precision Door Service.