How often does Beard Papas update its financial statements in the FDD?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
t the financial statements were available to be issued. Management has determined that there are no subsequent events required to be recorded or disclosed.
3. Concentrations of Risks
Credit Risk
Financial instruments which potentially subject the Company to concentration of credit risk are primarily cash and cash equivalents, and accounts receivable. The Company places its cash and cash equivalents in accounts with three financial institutions that are participating members of the U.S. Federal Deposit Insurance Corporation ("FDIC"). During the years ended December 31, 2024 and 2023, the Company's cash and cash equivalent balances exceeded the FDIC limit from time to time. The Company's cash and cash equivalents balances as of December 31, 2024, with FDIC member institutions exceeded the total amounts insured by FDIC's general deposit insurance rules by approximately $1,119,000. The Company's cash and cash equivalents balances as of December 31, 2023 exceeded the total amounts insured by FDIC's general deposit insurance rules by approximately $945,000.
Major Customers
One major customer accounted for appropriately 26% and 28% of total revenue for the years ended December 31, 2024 and 2023, respectively.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Beard Papas Franchise Disclosure Document, the company includes financial statements for the past two fiscal years. Specifically, the document references financial data as of December 31, 2024, and December 31, 2023.
This practice of providing two years of financial statements allows prospective franchisees to review the brand's recent financial performance and identify trends. For example, the FDD notes that one major customer accounted for approximately 26% of total revenue for the year ended December 31, 2024, and 28% for the year ended December 31, 2023. Amortization expense is also listed as approximately $4,000 for the year ended December 31, 2023, and $6,000 for the year ended December 31, 2022.
By presenting this information, Beard Papas aims to provide transparency to potential franchisees, enabling them to make informed decisions about investing in the franchise. Reviewing these statements is a crucial step in assessing the financial viability and stability of the Beard Papas franchise opportunity.