What was the change in accounts receivable for Bath Tune Up as of December 31, 2024?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income $ 1,588,884 $ 2,271,476 | ||
| Adjustments to reconcile Net income to Net cash provided by | ||
| operating activities | ||
| Depreciation 277,279 211,930 | ||
| Amortization of operating right-of-use lease assets 55,233 53,752 | ||
| Provision for credit losses 894,504 630,961 | ||
| Loss on disposal of assets — 3,651 | ||
| Foreign exchange (gain) loss 15,613 (9,062) | ||
| Decrease (increase) in assets: | ||
| Accounts receivable (254,306) (272,177) | ||
| Notes receivable (224,976) (460,630) | ||
| Rebates receivable 73,413 129,675 | ||
| Prepaid expenses 5,025 109,994 | ||
| Other current assets 11,379 10,096 | ||
| Other assets (4,000) — | ||
| Increase (decrease) in liabilities: | ||
| Accounts payable 312,705 (155,708) | ||
| Accrued liabilities (39,319) 33,690 | ||
| Operating lease liability (57,206) (59,809) | ||
| Advertising advances and deposits (146,679) (196,847) | ||
| Deferred revenue 27,529 (513,538) | ||
| Net cash provided by operating activities 2,535,078 1,787,454 | ||
| Cash flows from investing activities: | ||
| Purchase of property and equipment (174,417) (214,252) | ||
| Net cash used in investing activities (174,417) (214,252) | ||
| Cash flows from financing activities: | ||
| Advances to Parent (5,616,409) (5,067,710) | ||
| Allocations from Parent 3,716,061 3,671,090 | ||
| Net cash used in financing activities (1,900,348) (1,396,620) | ||
| Net increase in cash 460,313 176,582 | ||
| Cash at beginning of period 1,838,918 1,662,336 | ||
| Cash at end of period $ 2,299,231 $ 1,838,918 | ||
| Supplemental cash flow information: | ||
| Accrued capital expenditures $ 1,216 $ — | ||
| Transfer of property and equipment from Parent 135,536 — |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the change in accounts receivable is detailed in the cash flow statement. Specifically, the document indicates a decrease in accounts receivable of $254,306 from December 31, 2023, to December 31, 2024. This figure is part of the adjustments made to reconcile net income to net cash provided by operating activities.
This decrease in accounts receivable suggests that Bath Tune Up was more efficient in collecting its outstanding payments during 2024 compared to the previous year. For a franchisee, this could mean improved cash flow management within the Bath Tune Up system, as quicker collection of receivables can lead to better liquidity and financial stability.
However, it's important to note that this is just one aspect of the overall financial health of Bath Tune Up. Prospective franchisees should consider this information in conjunction with other financial data provided in the FDD, such as revenue, expenses, and liabilities, to gain a comprehensive understanding of the franchise's financial performance and stability.