What is the total amount of Best Brains' long term liabilities as of December 31, 2022?
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 |
| Long term liabilities | 7 | ||
| Loans & Advances | • | 144,439.99 | 140,568.45 |
| Mortgages ,notes , bonds payable in 1 year or m | iore | 150,000.00 | 150,000.00 |
| Deferred Franchise revenue-long term Total Long Term Liabilities | 91,143.01 385,583.00 | 96,212.40 386,780.85 |
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 long-term liabilities as of December 31, 2022, were $386,780.85. This figure is derived from the balance sheet presented in the financial statements.
Long-term liabilities represent Best Brains' obligations that are not expected to be settled within one year. These liabilities include loans and advances amounting to $140,568.45, mortgages, notes, and bonds payable totaling $150,000, and deferred franchise revenue of $96,212.40.
For a prospective Best Brains franchisee, understanding the franchisor's long-term liabilities can provide insight into the financial stability and leverage of the company. A high level of long-term debt could indicate a higher risk, while a lower level might suggest a more conservative financial approach. Reviewing these figures in comparison to previous years and industry benchmarks can offer a more comprehensive understanding of Best Brains' financial health.
It is important to note that these figures are based on the financial statements provided in the FDD and represent a snapshot in time. Potential franchisees should consult with a financial advisor to fully assess the implications of these liabilities and how they might affect the franchisor's ability to support its franchisees.