What was the change in notes receivable for Bath Tune Up as of December 31, 2024?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Continuing Royalty | Gross Revenue for Prior Month | |---|---| | | | | 7.0% | $0 - $30,000 | | 6.0% | $30,000.01 to $60,000 | | 5.0% | $60,000.01 to $120,000 | | 4.0% | $120,000.01 and above |
| Franchised Businesses, and between and among Franchisee’s Franchised Business and Franchisor, its | | | | | | | | |---|---|---|---|---|---|---|---| | designee, and/or Franchisee; (2) physical, electronic, and other security systems; (3) printers and other | | | | | | | | | peripheral devices; | (4) | archival back-up | systems; and | (5) | Internet access | mode (e.g., | form of |
| | December 31, 2024 | December 31, 2023 | |---|---|---| | Assets | | | | Current assets | | | | Cash $ 2,299,231 $ 1,838,918 | | | | Accounts receivable, net of allowance for credit losses of $188,577 | | | | in 2024 and $256,378 in 2023 1,304,922 1,265,202 | | | | Notes receivable current, net of allowance for credit losses of | | | | $332,025 in 2024 and $59,798 in 2023 409,478 564,015 | | | | Rebates receivable, net of allowance for credit losses of $597 in | | | | 2024 and $— in 2023 130,740 204,750 | | | | Prepaid expenses 131,152 136,177 | | | | Other current assets 33,271 44,650 | | | | Total Current assets 4,308,794 4,053,712 | | | | Notes receivable long-term, net of allowance for credit losses of | | | | $370,596 in 2024 and $71,942 in 2023 647,632 963,053 | | | | Property and equipment, net 603,591 569,701 | | | | Operating lease right-of-use asset 165,199 220,432 | | | | Other assets 4,000 — | | | | Total Assets $ 5,729,216 $ 5,806,898 | | | | Liabilities and Member's Equity | | | | Current liabilities | | | | Accounts payable $ 318,262 $ 5,557 | | | | Accrued liabilities 476,363 514,466 | | | | Operating lease liability, current 55,093 57,206 | | | | Advertising advances and deposits 9,926 156,605 | | | | Deferred revenue 650,085 622,556 | | | | Total Current liabilities 1,509,729 1,356,390 | | | | Operating lease liability, long-term 117,183 172,276 | | | | Total Liabilities 1,626,912 1,528,666 | | | | Commitments and Contingencies (Note 6) | | | | Member's equity | | | | Member's equity 13,383,394 11,794,510 | | | | Due from Parent (9,281,090) (7,516,278) | | | | Total Member's equity 4,102,304 4,278,232 | | | | Total Liabilities and Member's equity $ 5,729,216 $ 5,806,898 | | | 48 Total
EXHIBIT D
FORMER FRANCHISEES
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Terminated Franchises
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Revenue | ||
| Royalty income $ 7,256,176 $ 6,827,867 | ||
| Continuing franchise fees 2,801,768 2,588,937 | ||
| Gross sales rebates 2,085,378 2,151,381 | ||
| Initial franchise fees 1,579,558 2,632,960 | ||
| Product and other sales 206,378 207,153 | ||
| Total Revenue 13,929,258 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 |
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 between December 31, 2023, and December 31, 2024. The FDD provides figures for both current and long-term notes receivable, offering a detailed view of these assets.
Specifically, the current notes receivable, net of allowance for credit losses, decreased from $564,015 in 2023 to $409,478 in 2024. This represents a decrease of $154,537 in the short-term notes receivable. The allowance for credit losses related to these current notes receivable was $59,798 in 2023 and $332,025 in 2024.
Additionally, the long-term notes receivable, net of allowance for credit losses, decreased from $963,053 in 2023 to $647,632 in 2024. This is a decrease of $315,421 in the long-term notes receivable. The allowance for credit losses related to these long-term notes receivable was $71,942 in 2023 and $370,596 in 2024. The combined decrease in both current and long-term notes receivable provides a comprehensive view of the changes in Bath Tune Up's notes receivable portfolio during this period.
Furthermore, the document also shows the cash flow from operating activities related to notes receivable. The decrease in notes receivable is listed as ($224,976) for 2024 and ($460,630) for 2023. This indicates the change in cash flow related to notes receivable during these periods, which is essential for understanding the company's financial performance.