What was the reported value of Batteries Plus Bulbs' accounts payable in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
subject to the achievement of specific operational targets by the repurchased stores, subsequent to the acquisition. If achieved, $600 of the earnout liability will be paid in 2025 and $400 will be paid in 2026. The contingent earnout liabilities are recorded with the notes payablestore repurchase on the consolidated balance sheets.
During 2023, Batteries Plus acquired the operating assets of four franchised stores using available cash on-hand. Batteries Plus now op
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the information provided does not explicitly state the value of Batteries Plus Bulbs' accounts payable for 2023. However, the document does include details on the allocation of purchase prices related to the acquisition of franchised stores. Specifically, when Batteries Plus Bulbs acquired four franchised stores in 2023, $146 (in thousands) was allocated to current liabilities. It is important to note that this figure represents the current liabilities assumed as part of those specific acquisitions, not the company's overall accounts payable.
Accounts payable is a crucial metric for assessing a company's short-term financial obligations. It reflects the amounts owed to suppliers and vendors for goods and services received but not yet paid for. A high accounts payable balance could indicate that the company is effectively managing its cash flow by delaying payments, but it could also signal potential difficulties in meeting its obligations if the balance becomes too high relative to its current assets.
For a prospective Batteries Plus Bulbs franchisee, understanding the company's accounts payable practices is essential. While the FDD excerpts provide some insight into how liabilities are handled during store acquisitions, they do not offer a comprehensive view of the company's overall accounts payable. Therefore, it would be prudent for potential franchisees to ask the franchisor for more detailed financial statements that clearly outline the accounts payable balance and related payment terms. This information will help them assess the financial health and stability of Batteries Plus Bulbs and make informed decisions about their investment.