What was the change in notes receivable for Bath Tune Up as of December 31, 2023?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
258 14,408,298 | | | | Operating expenses | | | | Cost of product sales 61,171 38,689 | | | | Selling and advertising 3,407,107 3,309,601 | | | | Operating and administrative 8,682,605 8,310,719 | | | | Loss on disposal of assets — 3,651 | | | | Foreign exchange loss (gain) 15,613 (9,062) | | | | Other operating expense 28,018 — | | | | Total Operating expenses 12,194,514 11,653,598 | | | | Income from operations 1,734,744 2,754,700 | | | | Other income (expense) | | | | Interest income 83,205 54,737 | | | | Other expense, net (229,065) (537,961) | | | | Total Other income (expense) (145,860) (483,224) | | | | Net income $ 1,588,884 $ 2,271,476 | | |
9 Total
Transferred Franchises
| 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 |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the notes receivable decreased by $460,630 as of December 31, 2023. This decrease is reflected in the cash flow statement under cash flows from operating activities. This indicates the amount of notes Bath Tune Up collected during the year.
Notes receivable represent money owed to Bath Tune Up, typically from franchisees or other parties. A decrease in notes receivable suggests that Bath Tune Up collected more on its outstanding notes than it issued in new notes during that period. This can be a positive sign, indicating efficient collection practices and a reduction in outstanding debt owed to the company.
For a prospective franchisee, this information provides insight into Bath Tune Up's financial management and its ability to collect on debts. While a decrease in notes receivable can be seen as positive, it's important to consider the context. A significant decrease might also indicate a change in lending practices or a reduction in financing offered to franchisees. Reviewing this trend over several years, if available, would provide a more comprehensive understanding of Bath Tune Up's financial health and practices.