What is the total reported value of stockholder's equity for Punch King Fitness?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Total Liabilities | , ———————————————————————————————————— | | Stockholder's equity | | Common Stock, no par value, 1,000 shares authorized | 761. | | and issued | 2,000 | | Retained Earnings | · | | Total stockholder's equity | 2,000 | | Total liabilities and stockholder's equity | $ 2,000 |
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the total stockholder's equity is reported as $2,000. This figure represents the net worth of Punch King Fitness as of a specific date, reflecting the owners' stake in the company after deducting liabilities from assets. It is comprised of common stock valued at $761 and retained earnings of $2,000.
For a prospective franchisee, understanding the franchisor's financial health is crucial. A higher stockholder's equity generally indicates a more stable and financially sound company. However, it's essential to analyze this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive view of Punch King Fitness's financial position.
It's important to note that this figure is a snapshot in time and may not reflect the current financial situation of Punch King Fitness. Prospective franchisees should review the complete financial statements and consult with a financial advisor to assess the franchisor's long-term financial viability and stability before making any investment decisions.