What was the total amount of liabilities for Bath Tune Up as of December 31, 2024?
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 | ||
| Operating lease liability, long-term 117,183 172,276 | ||
| Total Liabilities 1,626,912 1,528,666 | ||
| Commitments and Contingencies (Note 6) | ||
| Member's equity | ||
| Member's equity 13,383,394 11,794,510 | ||
| Due from Parent (9,281,090) (7,516,278) | ||
| Total Member's equity 4,102,304 4,278,232 | ||
| Total Liabilities and Member's equity $ 5,729,216 $ 5,806,898 |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the company's total liabilities as of December 31, 2024, were $1,626,912. This figure represents the sum of all current and long-term financial obligations that Bath Tune Up was responsible for at that specific point in time. It's important to note that this number reflects the liabilities of the franchisor, KTU LLC, and not the liabilities of individual franchisees.
Specifically, the current liabilities, which are obligations due within one year, totaled $1,509,729. These included accounts payable ($318,262), accrued liabilities ($476,363), current operating lease liabilities ($55,093), advertising advances and deposits ($9,926), and deferred revenue ($650,085). Additionally, Bath Tune Up had long-term operating lease liabilities amounting to $117,183. The sum of these current and long-term liabilities constitutes the total liabilities figure.
For a prospective franchisee, understanding the franchisor's financial liabilities is crucial. While the franchisee is not directly responsible for these debts, the financial health of the franchisor can impact the support and services they provide. A high level of liabilities compared to assets could indicate financial instability, which might affect Bath Tune Up's ability to invest in training, marketing, or technology, all of which are beneficial to franchisees. Therefore, it is advisable for potential franchisees to review the franchisor's balance sheet carefully and discuss any concerns with a financial advisor.