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What was the amount of accounts receivable that 7 Brew had with its parent company as of December 31, 2023?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

ompanies that are affiliated with a member of the Parent. Balances and transactions with related parties consist of the following:

ecember 29, 2024 Dec ember 31, 2023 Dec 2022 2022

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, the accounts receivable from its parent company as of December 31, 2023, was $8,811. This represents the amount owed to 7 Brew by its parent, Brew Culture, LLC, for services or goods provided on credit. Accounts receivable are considered current assets, reflecting amounts expected to be collected within a year.

For a prospective franchisee, this figure provides insight into the financial interactions between 7 Brew and its parent company. It's important to understand the nature of these transactions and whether they are typical for franchise systems. A consistently high accounts receivable balance from the parent could indicate potential financial dependencies or complexities that warrant further investigation.

Franchisees should consider this information in the context of the overall financial health of 7 Brew. While a relatively small accounts receivable balance might not be a cause for concern on its own, it's crucial to assess it alongside other financial metrics and ask the franchisor for clarification on the nature and terms of these inter-company transactions. Understanding these relationships can help a franchisee evaluate the stability and transparency of the franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.