What was the net amount of commissions receivable for All County in 2024?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
ults of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America
Joe Teston CPA Advisors St. Petersburg, Florida January 28, 2025
Joe Teston CPA Advisors
Balance Sheets
at December 31, 2024, 2023, & 2022
| Year 2024 | Year 2023 | Year 2022 | |
|---|---|---|---|
| ASSETS | |||
| CURRENT ASSE |
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the net commissions receivable for the company in 2024 was $(3,198). This figure represents the balance of commissions that All County had earned but not yet collected as of the end of the 2024 fiscal year, after accounting for any potential uncollectible amounts. The commissions receivable balance is considered a current asset on All County's balance sheet.
The negative value for 2024 indicates that the allowance for doubtful accounts (estimated uncollectible amounts) exceeded the gross commissions receivable. This could be due to a change in accounting estimates, specific large uncollectible accounts, or a more conservative approach to estimating potential losses.
Prospective franchisees should pay attention to the trend of commissions receivable over the three years presented in the FDD. The commissions receivable, net, was $45,404 in 2023 and $95,321 in 2022. Understanding the reasons behind these fluctuations can provide insights into the financial health and operational efficiency of All County.