What was the total amount of the contract termination liability for Batteries Plus Bulbs in 2024?
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 | |
| Non-current liabilities | |||
| Finance lease liability, less current portion | 131 | - | |
| Contract termination | 172 | 268 | |
| Contract liability, less current portion | 7,319 | 7,211 | |
| Operating lease liabilities, less current portion | 48,345 | 44,755 | |
| Total non-current liabilities | 55,967 | 52,234 | |
| Member’s equity | 323,565 | 332,251 | |
| Total liabilities and member’s equity | $ 429,937 | $ 429,134 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to the 2025 FDD, Batteries Plus Bulbs' contract termination liability is divided into current and non-current portions. The current portion of the contract liability for 2024 is $1,073, while the non-current portion, listed under 'Contract termination', is $172.
Therefore, the total contract termination liability for Batteries Plus Bulbs in 2024 is the sum of these two amounts. This distinction between current and non-current liabilities is important for understanding the timing of these obligations. Current liabilities are those due within one year, while non-current liabilities are due beyond one year.
For a prospective franchisee, this information provides insight into the financial obligations Batteries Plus Bulbs has related to contract terminations. It is important to understand what these liabilities represent and how they might impact the financial health of the company. Reviewing these figures over several years, as presented in the FDD, can also reveal trends and potential risks.