What was the reported amount for Beggars Pizza's royalty receivables in the provided financial data?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Cash flows from operating activities: | ||
|---|---|---|
| Net income | $ 621,660 | $ 800,280 |
TRANSFER OF TELEPHONE SERVICE AGREEMENT
| Royalty receivables | 5,718 | (5,455) |
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the royalty receivables were $5,718 for one period and ($5,455) for another period.
Royalty receivables represent the amount of royalty fees that are owed to Beggars Pizza but have not yet been collected. These figures can fluctuate based on the timing of payments from franchisees and the specific accounting period being reported. The negative number indicates a credit or adjustment to the royalty receivables during that period.
For a prospective franchisee, understanding these figures is important for assessing the financial health of Beggars Pizza. While the provided excerpt does not specify the exact dates or periods these figures correspond to, it is crucial to review the full financial statements in the FDD to understand the trends and context of these receivables. A consistent increase in royalty receivables could indicate potential issues with franchisees' ability to pay or with the franchisor's collection processes.