What was the change in rebates receivable 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 |
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, net of allowance for credit losses, changed between December 31, 2023, and December 31, 2024. On December 31, 2023, the rebates receivable was $204,750, while on December 31, 2024, it was $130,740. This represents a decrease of $74,010 in rebates receivable year-over-year. The allowance for credit losses was $597 in 2024 and $0 in 2023.
This information is found within the assets section of the balance sheet. Rebates receivable represent money that is owed to Bath Tune Up, typically from vendors or suppliers, in the form of rebates. The 'net of allowance for credit losses' indicates an estimate of the amount of rebates that may not be collectible. A decrease in rebates receivable could be due to a variety of factors, such as changes in sales volume, rebate programs, or the efficiency of collecting rebates.
For a prospective franchisee, this data point offers insight into the financial health and operational efficiency of Bath Tune Up. Monitoring changes in receivables can help assess the effectiveness of the company's financial management and its ability to convert potential earnings into cash. It is important to note that this is just one aspect of the overall financial picture, and further investigation into the reasons behind the change would be prudent.
Understanding the fluctuations in rebates receivable can assist a franchisee in evaluating the stability and potential profitability of a Bath Tune Up franchise. It is advisable for potential franchisees to discuss these figures with the franchisor to gain a deeper understanding of the factors influencing these changes and their potential impact on the franchisee's business.