What was the net accounts receivable for Annex Brands in 2023?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 12,219,000 | $ 11,992,000 |
| Accounts receivable, net of allowance for doubtful | ||
| accounts of $910,000 and $948,000, respectively | 1,377,000 | 1,642,000 |
| Prepaid expenses and other current assets | 1,220,000 | 704,000 |
| Total current assets | 14,816,000 | 14,338,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the net accounts receivable in 2023 was $1,642,000. This figure represents the amount of money that Annex Brands expected to collect from its franchisees after deducting an allowance for doubtful accounts. The allowance for doubtful accounts for 2023 was $948,000.
Accounts receivable primarily consist of continuing franchise fees. These fees are based on a percentage of the franchisee's gross sales. The fact that Annex Brands reports accounts receivable means that franchisees are not always paying these fees immediately.
For a prospective franchisee, understanding the accounts receivable and the allowance for doubtful accounts can provide insight into the financial health of Annex Brands and the payment behavior of its franchisees. A high or increasing allowance for doubtful accounts could indicate potential issues with franchisees meeting their financial obligations.