What was the bad debt expense for Bananas Smoothies Frozen Yogurt in 2022?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
s) Due to affiliates Total current liabilities | $ | 9,399 191,491 9,993 45,584 256,467 | $ 11,405 171,722 13,583 10,443 207,153 | | Long-term liabilities: Deferred revenue, net of current (opened stores) Total liabilities | | 13,823 270,290 | 23,816 230,969 | | Commitments and contingencies (Notes 1, 5 and 7) | | | | | Members' equity | | 116,716 | 353,015 | | TOTAL LIABILITIES AND MEMBERS' EQUITY | $ | 387,006 | $ 583,984 |
(A Limited Liability Company) STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 29, 2024, DECEMBER 31, 2023, AND DECEMBER 25, 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Revenues: | ||||||
| Royalties | $ | 589,898 | $ | 643,409 | $ | 677,140 |
| Advertising fund revenues | 49,793 | 60,608 | 71,085 | |||
| Franchise fees and transfer fees | 13,583 | _ | 13,584 | _ | 15,527 | |
| Total revenues | 653,274 | _ | 717,601 | _ | 763,752 | |
| Operating expenses: | ||||||
| Administration and management fe |
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 FDD, Bananas Smoothies Frozen Yogurt's bad debt expense in 2022 was $10,522. This figure represents the amount of uncollectible accounts receivable that the company wrote off as an expense during that year.
For a prospective franchisee, understanding the franchisor's bad debt expense can provide insight into the financial health of Bananas Smoothies Frozen Yogurt and the creditworthiness of its customers or franchisees. A high bad debt expense might indicate potential issues with the financial stability of existing franchisees or the effectiveness of the franchisor's credit policies.
It's important to note that bad debt expense can fluctuate from year to year based on various factors, including economic conditions and changes in the franchisor's credit policies. Reviewing trends in bad debt expense over multiple years, as presented in the FDD, can offer a more comprehensive understanding of the franchisor's financial risk. Additionally, a prospective franchisee may want to inquire about the specific factors contributing to the bad debt expense and the franchisor's strategies for managing and mitigating this risk.