What was the amount of proceeds from sales of property and equipment for Batteries Plus Bulbs in 2022?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
$10 to other assets, $2,208 to goodwill, and ($81) to current liabilities. Of this purchase price, $2,362 was cash and $930 was a note payable paid by the Company in January 2023.
Operating results of franchised stores acquired have been included in the accompanying consolidated financial statements from their respective acquisition dates forward.
NOTE M - SALE OF CORPORATE-OWNED STORES
The Company did not sell any corporate-owned stores in 2023.
During 2022, Batteries Plus sold the operating assets of five corporate-owned stores. Batteries Plus no longer operates these locations as Batteries Plus operated stores. The allocation of the $1,005 selling price was bas
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 FDD, Batteries Plus Bulbs sold the operating assets of five corporate-owned stores in 2022. The allocation of the selling price included $206,000 attributed to property and equipment. The total selling price for these assets was $1,005,000. Of this, $464,000 was received in cash, and $541,000 was in the form of a note receivable. However, in 2023, Batteries Plus Bulbs became uncertain about the collectability of the note and recorded a reserve against the remaining balance.
This indicates that while the initial sale of property and equipment generated $206,000, the actual cash realized from the sale was only $464,000, with the remaining amount subject to uncertainty. For a prospective franchisee, this highlights the importance of understanding the terms of asset sales and the potential risks associated with receivables. It also demonstrates the company's accounting practices regarding asset sales and how they address potential losses.
It's important to note that the figures are based on the book value of the assets and liabilities sold. The decision to record a reserve against the note receivable in the following year suggests a degree of caution in the company's financial reporting. This could be relevant for franchisees when evaluating the financial stability and practices of Batteries Plus Bulbs.