What was the total value of Bath Tune Up's current assets as of December 31, 2022?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
t findings, and certain internal control-related matters that we identified during the audit.
February 8, 2023
Financial Statements
Balance Sheet
| December 31, | 2022 |
|---|---|
| Assets | |
| Current assets | $ 1,662,336 |
| Cash ($395,843 restricted) | |
| Accounts receivable, net of allowance for doubtful accounts of $133,741 Rebate receivable | 1,587,748 334,425 |
| Current maturities of notes receivable, net of allowance for doubtful accounts of $33,592 Prepaid expenses Inventory | 382,948 246,171 54,746 |
| Total current assets | 4,268,374 |
| Notes receivable, net of current maturities and allowance for doubtful accounts of $70,972 ROU asset Property and equipment, net | 710,666 274,184 630,265 |
| Total assets | $ 5,883,489 |
| Liabilities and Equity | |
| Current liabilities Accounts payable Advertising advances and deposits Accrued liabilities Lease liability, current Deferred revenue | $ 220,500 353,452 480,776 54,493 1,136,094 |
| Total current liabilities | 2,245,315 |
| Lease li |
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 company's total current assets as of December 31, 2022, were $4,268,374. This figure represents the sum of several sub-categories of assets that are expected to be converted into cash or used up within one year. These include cash (with $395,843 restricted), accounts receivable (net of allowance for doubtful accounts of $133,741), rebate receivable, current maturities of notes receivable (net of allowance for doubtful accounts of $33,592), prepaid expenses, and inventory.
Understanding the composition of these current assets is important for prospective Bath Tune Up franchisees. For instance, a significant portion of current assets is tied up in accounts receivable ($1,587,748), which represents money owed to the company by its customers. The ability to efficiently collect these receivables will directly impact the company's cash flow. Similarly, the level of inventory ($54,746) could indicate the scale of product sales and the efficiency of inventory management.
The FDD also lists total assets for Bath Tune Up as $5,883,489 as of the same date. This broader category includes both current and non-current assets such as notes receivable, ROU (Right-of-Use) assets, and property and equipment. Current liabilities totaled $2,245,315, which includes accounts payable, advertising advances and deposits, accrued liabilities, lease liability, and deferred revenue. Member's equity is listed as $9,523,034, with a due from parent of ($6,119,658). Total equity is $3,403,376.
Reviewing the financial statements and understanding these figures is a crucial part of the due diligence process for potential franchisees. It provides insight into the financial health and operational efficiency of Bath Tune Up, allowing franchisees to make informed decisions.