What was the total amount of B Bops' other non-current assets as of December 31, 2023?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Asset | S | |||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | n= | 2023 | 2022 | 2021 | ||||
| Current Assets | ||||||||
| Cash | $ | 542,855 | $ | 467,403 | $ | 351,509 | $ | 170,478 |
| Franchise fee receivable | 45,183 | 14,761 | 13,029 | 13,231 | ||||
| Receivable - related party | 32,380 | |||||||
| Total Current Assets | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the company's total other non-current assets as of December 31, 2023, amounted to $132,338. The primary component of these assets is a note receivable from a shareholder.
Specifically, this note receivable from the shareholder was $132,338 as of December 31, 2023. The FDD also provides figures for other years, allowing a comparison of this asset over time. For instance, the note receivable was $125,973 as of December 31, 2021, and it increased to $129,116 by December 31, 2022, before reaching $132,338 in 2023 and $194,917 in 2024.
This information is crucial for prospective franchisees as it sheds light on B Bops' financial structure and its dealings with related parties. A significant portion of the company's other non-current assets is tied to this note receivable, which could impact the company's liquidity and financial flexibility. Franchisees should consider the implications of such related-party transactions and how they might affect the overall health and stability of the franchise system.
Furthermore, the FDD notes that no payments on this note receivable are expected within one year of the financial statement date. This indicates that the funds are not readily available for B Bops to use for its operational needs, potentially influencing its ability to support franchisees or invest in growth initiatives. Therefore, understanding the nature and terms of this note receivable is essential for any potential B Bops franchisee.