What was the total franchise fee receivable for B Bops in 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchise fee receivable for 2023 was $14,761. This figure represents the amount of franchise fees that B Bops expected to collect from outstanding balances as of December 31, 2023.
For a prospective franchisee, the franchise fee receivable indicates the amount of money owed to B Bops from its franchisees for initial franchise fees. This metric can offer insights into the financial health and stability of the franchise system. A significant increase in franchise fee receivables could suggest that new franchisees are having difficulty paying their fees or that B Bops is offering more lenient payment terms.
It is important to note that the management of B Bops did not consider an allowance for doubtful accounts necessary, meaning they believed that all outstanding franchise fees would be collected. This reflects management's confidence in the creditworthiness of their franchisees and the overall financial stability of the B Bops franchise system.