What was the reported value of prepaid commissions and broker fees for Bath Tune Up?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
ities, net of allowances for doubtful accounts | (382,948) | | Notes receivable, net of current maturities and allowances for doubtful accounts | $ 710,666 |
4. Prepaid Expenses
Prepaid expenses consist of the following as of December 31:
| Prepaid commissions and broker fees | $ 143,900 | |-
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 value of prepaid commissions and broker fees is reported as $143,900. This figure represents specific costs paid for franchises that have been sold but have not yet begun operations.
For a prospective Bath Tune Up franchisee, this indicates the scale of upfront investments the company makes in securing new franchisees. It is important to note that these prepaid expenses are related to franchise sales that are still pending commencement of operations.
Understanding the nature and amount of prepaid commissions and broker fees can provide insight into Bath Tune Up's growth strategy and financial health. Franchisees may want to inquire about the typical timeline for a new franchise to begin operations and how these prepaid expenses are amortized or recognized as revenue over time.