What was the total amount of Best Brains' current liabilities as of December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Particulars | Schedule No. | As at December 31, 2023 | As at December 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Current Assets Cash & cash equivalents | 1 | 262,049.67 | 154,275.10 |
| Inventory | _ | 417,347.00 | 289,840.00 |
| Trade Receivables | 2 | 2,038,407.38 | 1,549,975.79 |
| Other Current Assets Total Currrent Assets | 3 | 255,726.78 2,973,530.83 | 225,576.84 2,219,667.73 |
| Property and Equipment ,net of accumulated depreciation | 4 | 290,790.28 | 268,207.05 |
| Other Assets | 5 | 1,076,049.46 | 958,557.46 |
| Total Assets | 4,340,370.57 | 3,446,432.24 | |
| Current liabilities Accounts Payable Other Current Liabilities Deferred Franchise revenue-current Total Current Liabilities | 6 | 3,444,214.53 276,415.25 45,025.00 3,765,654.78 | 2,654,584.46 80,489.91 65,939.00 2,801,013.37 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the company's total current liabilities as of December 31, 2023, were $3,765,654.78. This figure represents the sum of several short-term financial obligations, including accounts payable, other current liabilities, and deferred franchise revenue that is due within one year.
For a prospective Best Brains franchisee, understanding the franchisor's current liabilities is crucial for assessing the financial health and stability of the company. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect the franchisor's ability to support its franchisees or invest in the brand's future growth. Conversely, a manageable level of current liabilities suggests that the franchisor is in a good position to meet its short-term obligations and continue operations smoothly.
It is important to note that this figure is just a snapshot in time and should be evaluated in conjunction with other financial metrics and trends. Prospective franchisees should review Best Brains' balance sheets for multiple years to identify any patterns or significant changes in its liability structure. Additionally, they should consider the nature of the liabilities and how they align with the company's business model and growth strategy. Consulting with a financial advisor can provide further insights into the implications of Best Brains' liabilities for potential franchisees.