What was the amount of intercompany receivables from Parent for Auntie Annes as of December 31, 2023?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| December 31, 2023 | December 25, 2022 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 22,662 | $ 31,196 |
| Restricted cash and cash equivalents - securitization | 29,582 | 27,456 |
| Accounts receivable, net of allowance for credit losses of | ||
| $1,143 and $1,383 in 2023 and 2022, respectively | 37,049 | 31,935 |
| Inventories | 978 | 1,116 |
| Prepaid expenses and other current assets | 9,263 | 8,720 |
| Advertising funds assets | 7,643 | 6,972 |
| Intercompany receivables from Parent | 3,277 | 3,277 |
| Total current assets | 110,454 | 110,672 |
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the intercompany receivables from the Parent company totaled $3,277 as of December 31, 2023. This represents the amount owed to Auntie Annes by its Parent company. The same amount, $3,277, was also recorded for the previous fiscal year, which ended on December 25, 2022.
Intercompany receivables typically arise from transactions between related entities within the same corporate structure. These receivables are considered current assets, reflecting their short-term nature and expectation of collection within a year. For a prospective franchisee, this figure provides insight into the financial interactions between Auntie Annes and its Parent company.
It's important to note that intercompany transactions are subject to scrutiny to ensure they are conducted at arm's length and do not distort the financial performance of either entity. While the amount remained consistent between 2022 and 2023, significant fluctuations in future years could warrant further investigation to understand the underlying reasons and potential implications for Auntie Annes's financial stability. Franchisees may want to inquire about the nature of these intercompany transactions and the policies in place to manage them.