What were the total liabilities for Antioch Pizza Shop in 2024?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 5,943 | $ | 8,142 | $ | 1,759 |
| Deferred revenue | 35,000 | 35,000 | 25,000 | |||
| Total current liabilities | 40,943 | 43,142 | 26,759 | |||
| Total liabilities | 40,943 | 43,142 | 26,759 |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the company's total liabilities in 2024 were $40,943. This figure represents the sum of their current liabilities, which include accounts payable and deferred revenue. Accounts payable totaled $5,943, while deferred revenue amounted to $35,000.
For a prospective franchisee, understanding the franchisor's liabilities can provide insight into the financial stability and health of the company. A high level of liabilities might indicate financial strain, while a lower level could suggest better financial management. In Antioch Pizza Shop's case, the liabilities are relatively modest compared to the company's assets and equity.
Deferred revenue, a significant portion of Antioch Pizza Shop's liabilities, represents payments received for services (in this case, franchise rights) that have not yet been fully earned. This is a common practice in franchising, where initial franchise fees are often recognized over the term of the franchise agreement. The fact that deferred revenue is classified as current suggests that Antioch Pizza Shop expects to recognize this revenue within the next year.
Overall, the liabilities reported in Antioch Pizza Shop's balance sheet appear manageable. However, a prospective franchisee should consider these figures in conjunction with other financial data, such as revenue, expenses, and cash flow, to gain a comprehensive understanding of the company's financial condition. Consulting with a financial advisor is recommended to fully assess the implications of these liabilities.