What was the reported amount for notes receivable for Bath Tune Up in 2024?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
mber 31, 2024 | $ 13,383,394 | $ (9,281,090) $ | 4,102,304 |
HFC KTU LLC (dba Kitchen Tune-Up and Bath Tune-Up) Statements of Cash Flows
| For the Years Ended | ||||
|---|---|---|---|---|
| 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 | ||
| Cash flows from investing activities: | ||||
| Purchase of property and equipment | (174,417) | (214,252) | ||
| Net cash used in investing activities | (174,417) | (214,252) | ||
| Cash flows from financing activities: | ||||
| Advances to Parent | (5,616,409) | (5,067,710) | ||
| Allocations from Parent | 3,716,061 | 3,671,090 | ||
| Net cash used in financing activities | (1,900,348) | (1,396,620) | ||
| Net increase in cash | 460,313 | 176,582 | ||
| Cash at beginning of period | 1,838,918 | 1,662,336 | ||
| Cash at end of period | $ | 2,299,231 | $ | 1,838,918 |
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 decrease in notes receivable from 2023 to 2024 was $224,976. This indicates a change in the amount of money owed to Bath Tune Up by its franchisees or other parties. This could be due to various factors, such as changes in payment terms, increased collections, or the sale of notes receivable to a third party.
For a prospective franchisee, this figure is important because it provides insight into the financial transactions between Bath Tune Up and its franchisees. A decrease in notes receivable could suggest that franchisees are paying their debts more promptly, which could be a positive sign for the overall health of the franchise system. However, it could also indicate that Bath Tune Up is extending less credit to its franchisees, which could potentially limit their ability to grow their businesses.
It is important to note that this figure only reflects the change in notes receivable and does not provide a complete picture of Bath Tune Up's financial performance. A prospective franchisee should review the entire financial statement and consult with a financial advisor to fully understand the implications of this figure.