What was the change in prepaid expenses for Bath Tune Up as of December 31, 2023?
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 | ||
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Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, prepaid expenses decreased by $5,025 as of December 31, 2023. The prepaid expenses were $136,177 on December 31, 2023, but decreased to $131,152 by December 31, 2024.
Prepaid expenses typically include items like insurance premiums, rent, or advertising costs that Bath Tune Up has paid in advance for services or goods to be received in the future. The decrease suggests that Bath Tune Up used more of these prepaid services or goods during 2024 compared to 2023.
For a prospective franchisee, monitoring changes in prepaid expenses can offer insights into Bath Tune Up's operational efficiency and financial management. A significant decrease in prepaid expenses could indicate better cost management or changes in payment schedules with vendors. It's important to note that prepaid expenses are a relatively small portion of Bath Tune Up's total assets.