What was the reported value of the accumulated deficit for Sonesta Simply Suites in the later year?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Shareholders’ Equity: | ||
|---|---|---|
| Common shares, $0.01 par value; 50,000,000 shares authorized, | ||
| 25,464,899 issued and outstanding | 255 | 255 |
| Additional paid in capital | 87,652 | 87,652 |
| Accumulated deficit | ( 9,676) | ( 6,763) |
| Total shareholders' equity | 78,231 | 81,144 |
| Total liabilities and shareholders' equity | $ 100,942 | $ 104,599 |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the accumulated deficit is a component of the shareholder's equity. The accumulated deficit for the later year was reported as $(9,676). This means that the company had a deficit of $9,676.
For a prospective franchisee, the accumulated deficit can be an important indicator of the financial health and stability of Sonesta Simply Suites. A large or growing deficit could suggest that the company has been experiencing losses and may be struggling financially.
However, it is important to consider the accumulated deficit in the context of the company's overall financial performance and history. A relatively small deficit may not be a cause for concern, especially if the company is growing and investing in its future. It is also important to compare the company's accumulated deficit to that of its competitors to get a sense of how it is performing relative to the industry. A prospective franchisee should consult with a financial advisor to fully understand the implications of the accumulated deficit for their investment.