How does All County record accounts receivable?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts Receivable is recorded net of an allowance for doubtful accounts to approximate their net realizable value. Management continuously reviews accounts receivable for uncollectible accounts and writes them off accordingly. The Company considers the accounts receivable to be fully collectible, and, accordingly, no allowance for doubtful accounts is considered necessary for the years ended December 31, 2024, 2023, and 2022.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the company records accounts receivable net of an allowance for doubtful accounts to approximate their net realizable value. This means All County estimates the amount of accounts receivable that may not be collected and reduces the recorded value accordingly.
All County management continuously reviews accounts receivable for uncollectible accounts and writes them off as necessary. However, for the years ended December 31, 2024, 2023, and 2022, All County considered the accounts receivable to be fully collectible and, therefore, did not consider an allowance for doubtful accounts necessary.
For a prospective franchisee, this indicates that All County has historically had a strong record of collecting its receivables. However, it is important to note that this is based on past performance and may not be indicative of future results. Franchisees should inquire about All County's current policies and procedures for managing accounts receivable and assessing the risk of uncollectible accounts.