What was the total amount of current liabilities 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 | |
|---|---|---|
| Liabilities and Member's Equity | ||
| Current liabilities | ||
| Accounts payable $ 318,262 $ 5,557 | ||
| Accrued liabilities 476,363 514,466 | ||
| Operating lease liability, current 55,093 57,206 | ||
| Advertising advances and deposits 9,926 156,605 | ||
| Deferred revenue 650,085 622,556 | ||
| Total Current liabilities 1,509,729 1,356,390 |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the total current liabilities as of December 31, 2023, were $1,356,390. This figure represents the sum of Bath Tune Up's short-term financial obligations, including accounts payable, accrued liabilities, operating lease liabilities, advertising advances and deposits, and deferred revenue, all due within one year.
For a prospective franchisee, understanding the franchisor's current liabilities is crucial as it provides insight into the company's short-term financial health and stability. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect the franchisor's ability to support its franchisees. Conversely, a manageable level of current liabilities suggests that the franchisor is in a good position to meet its short-term obligations and invest in the franchise system.
The FDD also lists the components of the current liabilities. Accounts payable were $5,557, accrued liabilities totaled $514,466, current operating lease liability was $57,206, advertising advances and deposits amounted to $156,605, and deferred revenue was $622,556. Reviewing these individual components gives a more detailed picture of the types of short-term obligations Bath Tune Up has.
It is important for potential franchisees to analyze these figures in conjunction with other financial data provided in the FDD, such as revenue, expenses, and cash flow statements, to gain a comprehensive understanding of Bath Tune Up's financial condition. Consulting with a financial advisor is recommended to assess the implications of these liabilities and make an informed investment decision.