What was the provision for doubtful accounts for Baymont Inn Suites as of December 31, 2024?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
23 | 20.7 | $ 1,361 $ | 65.69 | | For the twelve months ended December 31, 2024 | 4.1 | 308 | 75.63 | | As of December 31, 2024 | 24.8 | $ 1,669 $ | 67.32 |
The Company had $538 million of remaining availability under its program as of December 31, 2024.
5. ACCOUNTS RECEIVABLE
Allowance for Doubtful Accounts
The Company generates trade receivables i
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the provision for doubtful accounts as of December 31, 2024, was $6. This figure represents an estimate of uncollectible accounts receivable.
For a prospective Baymont Inn Suites franchisee, understanding the provision for doubtful accounts is crucial for assessing the financial health and stability of the franchise system. It reflects the franchisor's ability to manage credit risk and collect outstanding payments from franchisees or other related entities. A higher provision might indicate potential issues with franchisees meeting their financial obligations, while a lower provision could suggest effective credit management.
The FDD also provides figures for previous years, allowing potential franchisees to identify trends. In 2023, the provision was $3, and in 2022, it was a recovery of ($2). Reviewing these figures over time helps to evaluate the consistency and reliability of Baymont Inn Suites's financial performance and risk management practices. Additionally, the beginning and ending balances for each year are provided, offering a more complete picture of the company's handling of doubtful accounts.
It is important for prospective franchisees to consider these figures in conjunction with other financial data in the FDD and to seek professional financial advice to fully understand the implications for their investment. Understanding the franchisor's approach to managing doubtful accounts can provide valuable insights into the overall financial stability and risk profile of the Baymont Inn Suites franchise system.