For what years are the audited financial statements provided for Beard Papas?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
counts 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, the audited financial statements include data for the years ending December 31, 2024 and 2023. Specifically, the document references cash and cash equivalent balances for these years in relation to FDIC insurance limits. Additionally, it mentions revenue percentages from a major customer for the same periods. This information is crucial for prospective franchisees as it provides insight into the brand's recent financial performance and risk factors.
The FDD also notes that the company entered into an office lease agreement in 2023, recognizing an operating lease right-of-use asset and corresponding liability. Furthermore, the document states that the company adopted Accounting Standards Codification (ASC) 842 on January 1, 2022, and recorded operating lease right-of-use asset and corresponding operating lease liability. These details offer a glimpse into the company's financial obligations and accounting practices, which can be helpful for potential franchisees in assessing the overall financial health of the franchisor.
In addition, the FDD mentions amortization expenses for the years ended December 31, 2023 and 2022. This information, along with the other financial data provided for 2024 and 2023, allows potential franchisees to evaluate the financial stability and performance of Beard Papas over a multi-year period. Reviewing these audited financial statements is a critical step in the due diligence process for anyone considering investing in a Beard Papas franchise.