What was the change in prepaid expenses 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 | |
|---|---|---|
| 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 |
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 between December 31, 2023, and December 31, 2024. The balance sheet shows prepaid expenses of $136,177 on December 31, 2023, and $131,152 on December 31, 2024. This represents a decrease of $5,025 in prepaid expenses year-over-year.
Prepaid expenses are costs that Bath Tune Up has paid in advance for goods or services that will be used in the future. Common examples include insurance premiums, rent, or advertising fees paid upfront. A decrease in prepaid expenses could indicate that Bath Tune Up used more of these prepaid services during 2024 compared to 2023, or that they reduced their upfront payments for these items.
For a prospective franchisee, monitoring changes in prepaid expenses can offer insights into Bath Tune Up's operational efficiency and cash management practices. A significant decrease in prepaid expenses could free up cash flow in the short term, but it may also reflect changes in the company's spending strategies or relationships with vendors. It is important to consider these figures in the context of Bath Tune Up's overall financial performance and business strategy.