What was the current portion of contract liability for Batteries Plus Bulbs in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| LIABILITIES AND MEMBER'S EQUITY | |||
|---|---|---|---|
| Current liabilities | |||
| Accounts payable | $ 33,297 | $ 23,497 | |
| Accrued salaries and benefits | 3,618 | 7,046 | |
| Note payable - store repurchase | - | 930 | |
| Accrued warranty | 3,032 | 2,960 | |
| Other accrued expenses | 3,379 | 2,829 | |
| Due to franchisees | 380 | - | |
| Current portion of operating lease liabilities | 5,582 | 5,915 | |
| Current portion of finance lease liability | 44 | 100 | |
| Current portion of contract liability | 1,073 | 1,372 | |
| Total current liabilities | 50,405 | 44,649 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the current portion of contract liability in 2023 was $1,372. This figure represents the amount of contract liabilities due within the next year.
Contract liabilities typically arise from deferred revenue, such as payments received for goods or services that have not yet been fully delivered or rendered. For a Batteries Plus Bulbs franchisee, this could relate to customer prepayments for services like battery installation or extended warranties. The current portion indicates how much of these advance payments Batteries Plus Bulbs expects to fulfill in the near term.
Prospective franchisees should understand the nature of these contract liabilities. It is important to inquire with Batteries Plus Bulbs about what specific obligations these liabilities represent and how they might affect the franchisee's financial performance and cash flow. Understanding the details behind this figure can provide a clearer picture of the company's financial health and its obligations to customers.