What were the total other non-current assets for B Bops as of December 31, 2021?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | $ | 588,038 | $ | 482,164 | $ | 364,538 | $ | 216,089 |
| Fixed Assets | ||||||||
| Intangibles | $ | 37,700 | $ | 37,700 | $ | 37,700 | $ | 37,700 |
| Accumulated amortization | (18,326) | (18,326) | (18,326) | (18,326) | ||||
| Total Fixed Assets | $ | 19,374 | $ | 19,374 | $ | 19,374 | $ | 19,374 |
| Other Non-Current Assets | ||||||||
| Note Receivable - Shareholder | $ | 194,917 | $ | 132,338 | $ | 129,116 | $ | 125,973 |
| Total Other Non-Current Assets | $ | 194,917 | $ | 132,338 | $ | 129,116 | $ | 125,973 |
| Total Assets | $ Liabili | 802,329 ties and Stock | $ holder | 633,876 s Equity | $ | 513,028 | $ | 361,436 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the company's total other non-current assets as of December 31, 2021, were $125,973. A significant component of these assets was a note receivable from a shareholder, which also amounted to $125,973 as of the same date.
Non-current assets are those not expected to be converted to cash within one year. In B Bops's case, the note receivable from the shareholder is classified as a non-current asset because no payments are expected to be made within one year of the financial statement date. This arrangement suggests that the shareholder has a longer-term financial obligation to the company.
Prospective franchisees should note the presence and magnitude of related-party transactions, such as the note receivable from the shareholder. While not inherently problematic, these transactions warrant scrutiny to ensure they are conducted at arm's length and do not disadvantage the franchise system. Understanding the terms of the note receivable, including the interest rate and repayment schedule, is crucial for assessing the financial health and stability of B Bops.