What was the amount of accounts receivable for Beard Papas in 2022?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31 | |||||||
|---|---|---|---|---|---|---|---|
| 2023 | |||||||
| Performance obligations satisfied at a point in time | $ | 854,817 | $ | 646,371 | |||
| Performance obligations satisfied over time | $ | 787,774 |
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the accounts receivable from contracts as of December 31, 2022, was $362,007. This represents the ending balance of accounts receivable for that year.
Accounts receivable are amounts owed to Beard Papas by its customers for goods or services already provided. The FDD also notes that Beard Papas provides an allowance for doubtful accounts, which is an estimate of potential losses from customers who may not be able to pay. However, no allowances for doubtful accounts were recorded as of December 31, 2023, and 2022.
Prospective franchisees should understand how Beard Papas manages its accounts receivable and what policies are in place for handling overdue payments. The FDD mentions that Beard Papas generally charges an annual interest rate of 18% on trade receivables after the invoice becomes past due, which is a relatively high rate that could impact customer relationships. Understanding these financial details is crucial for assessing the financial health and stability of Beard Papas.