What was the current portion of the contract liability for Batteries Plus Bulbs in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS Current assets Cash and cash equivalents $ Accounts receivable, net Merchandise inventories, net Prepaid expenses Due from marketing fund | 10,716 29,858 56,393 4,426 668 102,061 | $ 26,197 25,763 48,576 4,665 |
|---|---|---|
| 1,034 | ||
| Total current assets | 106,235 | |
| Property and equipment | ||
| Furniture, fixtures and equipment | 15,913 | 14,383 |
| Vehicles | 1,841 | 1,740 |
| Leasehold improvements | 5,118 | 4,739 |
| Software | 26,733 | 23,913 |
| Finance lease right-of-use assets | 502 | 220 |
| 50,107 | 44,995 | |
| Accumulated depreciation | (29,978) | (24,213) |
| Construction in process | 1,196 | 346 |
| Total property and equipment | 21,325 | 21,128 |
| Other assets | ||
| Goodwill, net | 35,709 | 25,051 |
| Other intangible assets, net | 210,372 | 225,292 |
| Operating lease right-of-use assets, net | 57,761 | 52,047 |
| Notes receivable | 154 | 184 |
| Total other assets | 303,996 | 302,574 |
| $ Total assets | 427,382 | $ 429,937 |
| LIABILITIES AND MEMBER'S EQUITY | ||
| Current liabilities | ||
| Accounts payable | 40,401 | $ 33,297 |
| $ | ||
| Accrued salaries and benefits | 4,928 | 3,618 |
| Current portion of note payable - store repurchase | 4,050 | - |
| Accrued warranty | 3,123 | 3,032 |
| Other accrued expenses | 2,848 | 3,379 |
| Due to franchisees | 395 | 380 |
| Current portion of operating lease liabilities | 6,359 | 5,582 |
| Current portion of finance lease liabili |
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 the contract liability in 2024 was $512, while in 2023, it was $1,073. This figure represents the amount of contract liabilities due within the next year. Contract liabilities typically arise from deferred revenue or obligations to provide goods or services in the future.
For a prospective franchisee, understanding the current portion of contract liability is crucial because it reflects the franchisor's short-term financial obligations. A higher current liability might indicate a greater immediate demand on the company's cash flow. Conversely, a lower amount could suggest fewer short-term obligations.
It is important to note that the non-current portion of contract liability for Batteries Plus Bulbs was $8,223 in 2024 and $7,319 in 2023. This represents the long-term portion of these liabilities, which are due beyond the next year. Reviewing both the current and non-current portions provides a comprehensive view of the company's overall contract-related obligations.