What was the reported amount for notes receivable for Bath Tune Up in 2023?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
s. The notes are collateralized by the franchise territory. The notes generally bear interest at rates ranging from 6% to 10%, with maturities generally ranging from two to six years. A summary of notes receivable principal maturities follows:
| 2023 | $ 416,540 |
|---|---|
| 2024 | 322,461 |
| 2025 | 170,670 |
| 2026 | 148,745 |
| 2027 | 107,401 |
| Thereafter | 32,361 |
| Notes receivable | 1,198,178 |
| Less: allowance for doubtful accounts | (104,564) |
| Notes |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the notes receivable in 2023 was $1,198,178. This figure represents the total amount of money owed to Bath Tune Up by its debtors, which are expected to be collected in future periods.
It is important to note that this amount is before accounting for potential uncollectible accounts. The allowance for doubtful accounts, which is an estimate of the amount of notes receivable that may not be collected, was ($104,564). After deducting this allowance, the net notes receivable was $1,093,614.
Furthermore, the current maturities of notes receivable, net of allowances for doubtful accounts, amounted to ($382,948). This represents the portion of the notes receivable that is expected to be collected within one year. After subtracting the current maturities, the notes receivable, net of current maturities and allowances for doubtful accounts, was $710,666. This final figure provides a more conservative estimate of the amount of notes receivable that Bath Tune Up expects to collect in the long term.