What was the amount of Best Brains' audit fees payable as of December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| 6 ( | Other Current Liabilities | As at December 31, 2023 | As at December 31, 2022 |
|---|---|---|---|
| ( | Credit Card Liabilities | ||
| Credit Card at BOA4100 | 1,277.11 | 8,660.91 | |
| Credit Card at Chase | 36,525.47 | 48,735.96 | |
| Chase United | 29,956.61 | 434.79 | |
| Credit BCBS | 3,726.42 | 1,405.36 | |
| Citibank AAdvantage | 10,970.12 | 3,252.89 | |
| Total credit card Liabilities | 82,455.73 | 62,489.91 | |
| ( | Other Liabilities | ||
| Franchise fees advance | 162,500.00 | 18,000.00 | |
| Audit fees Payable | 19,050.00 | ||
| Payroll Liabilities | 12409.52 | 0.00 | |
| Health Insurance (pre-tax) | |||
| Total Payroll liabilities | 12409.52 | 0.00 | |
| 11 | Total |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the audit fees payable as of December 31, 2023, were $19,050. This figure is part of the 'Other Liabilities' listed under 'Other Current Liabilities' on the balance sheet. There was no corresponding audit fees payable listed for the previous year, December 31, 2022, in this section of the balance sheet.
For a prospective Best Brains franchisee, this indicates the company's financial obligations for auditing services at the close of 2023. Understanding the nature and amount of liabilities is crucial for assessing the financial health and stability of Best Brains. This specific liability reflects the cost of ensuring the accuracy and compliance of the company's financial records.
It is important to note that audit fees can vary depending on the scope and complexity of the audit. Franchisees should consider this figure in the context of Best Brains' overall financial performance and consult with a financial advisor to fully understand the implications. Additionally, it would be prudent to inquire whether Best Brains anticipates any changes to their auditing practices or associated costs in the future, as this could impact the financial planning for individual franchise locations.