What is the category of liabilities that includes Ally Auto for Best Brains?
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 | 276,415.25 | 80,489.91 |
| · | |||
| Į. | As at | As at | |
| ong term liabilities | December 31, | December 31, | |
| 2023 | 2022 | ||
| ı | oans & Advances Ford F150 | - | |
| Ally Auto | 567.52 | 4,923.80 | |
| Auto Finance GMC | 35,879.02 | 45,950.84 | |
| Ford Motor Credit | 3,967.44 | 9,564.32 | |
| Wells Fargo Tesla | 53,896.52 | - | |
| Other loan | 50,129.49 | 80,129.49 | |
| Total loans & advances | 144,439.99 | 140,568.45 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Ally Auto is listed under the category of long-term liabilities. Specifically, within long-term liabilities, it is further categorized under loans and advances. As of December 31, 2023, the balance for Ally Auto was $567.52, while on December 31, 2022, it was $4,923.80.
This categorization indicates that Ally Auto represents a debt or financial obligation of Best Brains that extends beyond one year. For a prospective franchisee, understanding the nature and extent of these liabilities is crucial. It provides insight into the financial obligations Best Brains has undertaken, which could impact the overall financial health and stability of the company.
Reviewing the specific details of these long-term liabilities, such as interest rates, repayment terms, and collateral, would be essential for a potential franchisee to assess the financial risk and stability of Best Brains. Additionally, comparing these liabilities with those of similar franchise systems can provide a benchmark for evaluating Best Brains' financial management practices.