Does Beard Papas provide audited 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. This customer accounted for 23% and 38% of accounts receivable as of December 31, 2024 and 2023, respectively. The Company routinely monitors and assesses the financial strength of its customers. As a result, the Company believes that the concentration of credit risk is limited.
Significant Supplier
The Company uses one supplier, an affiliate in Singapore, who has provided all the frozen doughs sold at all Beard Papa's® locations since January 1, 2016.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the company provides information regarding its financial status. Specifically, the document highlights concentrations of risk related to credit, major customers, and significant suppliers.
Beard Papas places its cash and cash equivalents in accounts with three financial institutions that are FDIC members. 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.
One major customer accounted for approximately 26% and 28% of total revenue for the years ended December 31, 2024 and 2023, respectively. This customer accounted for 23% and 38% of accounts receivable as of December 31, 2024 and 2023, respectively. The company uses one supplier, an affiliate in Singapore, who has provided all the frozen doughs sold at all Beard Papa's locations since January 1, 2016. The company also uses an exclusive manufacturer/distributor to distribute packing materials to Beard Papa's locations. The document also mentions a supplemental disclosure for a non-cash transaction where the company entered into an office lease agreement in 2023 and recognized operating lease right-of-use asset and corresponding operating lease liability of approximately $541,000.