What was the total current assets for Apricot Lane in 2023?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
LLP Grass Valley, CA February 10, 2025
Sointo Group
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| ASSETS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Current Assets: | 4. | 107 (10 | |||
| Cash and cash equivalents | S | 85,129 | $ | 186,678 | |
| Marketable securities | 113,379 | 161,923 | |||
| Franchise fees receivable | 222,000 | 207,000 | |||
| Franchise royalties and advertising receivable | |||||
| less allowance for doubtful accounts | 72,069 | 95,760 | |||
| Reimbursable franchise costs and other receivab | les | ||||
| less allowance for doubtful accounts | 18,076 | 24,017 | |||
| Prepaid expenses | 20,201 | 22,346 | |||
| Current portion of |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the company's total current assets in 2023 were $697,724. This figure represents the sum of all assets that Apricot Lane could reasonably expect to convert into cash within one year. These assets include cash and cash equivalents, marketable securities, franchise fees receivable, franchise royalties and advertising receivable (less allowance for doubtful accounts), reimbursable franchise costs and other receivables (less allowance for doubtful accounts), prepaid expenses, and the current portion of notes receivable.
For a prospective franchisee, understanding the franchisor's current assets can provide insight into the financial health and stability of the company. A higher value of current assets suggests that Apricot Lane has sufficient liquidity to meet its short-term obligations and invest in future growth. This can be reassuring for franchisees who are considering investing in the brand, as it indicates that the franchisor is financially sound and capable of supporting its franchisees.
However, it's important to consider the composition of these current assets. For example, a large portion of current assets in the form of receivables might indicate potential collection issues. Therefore, a prospective franchisee should further investigate the quality and reliability of these assets by asking Apricot Lane for more detailed information about their financial performance and risk management practices. Analyzing these figures in conjunction with liabilities and overall financial performance will give a more complete picture of the company's financial standing.
In comparison, the total current assets for Apricot Lane in 2024 were $530,854. The decrease in total current assets from 2023 to 2024 could be due to various factors, such as increased spending, decreased revenues, or changes in accounting practices. A prospective franchisee may want to inquire about the reasons for this change to better understand the financial trends affecting the company.