What was the change in rebates receivable for Bath Tune Up as of December 31, 2023?
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 |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the rebates receivable increased by $129,675 as of December 31, 2023. This figure is part of the adjustments to reconcile net income to net cash provided by operating activities.
Rebates receivable represent the amount of money that Bath Tune Up expects to receive from rebates offered to customers. An increase in this figure suggests that more customers took advantage of rebate programs during the year, or that the processing of these rebates was delayed, leading to a higher outstanding balance at year-end.
For a prospective franchisee, this information provides insight into how Bath Tune Up manages its finances and customer incentives. Monitoring changes in rebates receivable can help franchisees understand the effectiveness of rebate programs and their impact on cash flow. It's also important to note that the rebates receivable are reported net of allowance for credit losses, indicating that Bath Tune Up accounts for the possibility that some rebates may not be fully collected.