What was the net amount of 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 | |
|---|---|---|
| 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 net rebates receivable as of December 31, 2023, was $204,750. This figure represents the amount of rebates that Bath Tune Up expected to receive, minus an allowance for potential credit losses. The allowance for credit losses was recorded as zero for 2023, meaning the full rebate amount was considered recoverable at that time.
For a prospective franchisee, rebates receivable can be an important indicator of Bath Tune Up's financial health and its ability to manage and collect on its outstanding receivables. A higher rebates receivable balance could suggest strong sales or promotional activity, but it also carries the risk of potential uncollectible amounts. The fact that there was no allowance for credit losses in 2023 suggests that Bath Tune Up had a high degree of confidence in its ability to collect these rebates.
It's worth noting that the rebates receivable decreased from $204,750 in 2023 to $130,740 as of December 31, 2024, and an allowance for credit losses of $597 was recorded in 2024. This could indicate a change in Bath Tune Up's sales or promotional strategies, or a more conservative approach to estimating potential credit losses. A prospective franchisee should inquire about the nature of these rebates, the terms under which they are earned, and the historical collectability rates to fully understand their impact on Bath Tune Up's financial performance.