What was the total amount of long-term liabilities for Best Brains 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 includes several components, such as loans and advances, mortgages, notes, and bonds payable in one year or more, and deferred franchise revenue-long term. These liabilities represent financial obligations that Best Brains is expected to fulfill over a period exceeding one year.
For a prospective Best Brains franchisee, understanding the franchisor's long-term liabilities is crucial for assessing the financial stability and health of the company. A high level of long-term debt could indicate potential financial strain, which might affect the franchisor's ability to support its franchisees. Conversely, a manageable level of long-term liabilities suggests that the franchisor is financially stable and capable of meeting its obligations.
The FDD provides a breakdown of these liabilities, offering further insight into the types of debts Best Brains holds. Specifically, the long-term liabilities include loans & advances amounting to $140,568.45, mortgages, notes, and bonds payable in 1 year or more totaling $150,000.00, and deferred franchise revenue-long term listed as $96,212.40 as of December 31, 2022. Reviewing these components can help a potential franchisee understand the nature of Best Brains' financial commitments.
It is important for prospective franchisees to analyze these figures in the context of Best Brains' overall financial performance and industry benchmarks. Comparing the long-term liabilities to assets and equity can provide a clearer picture of the company's leverage and solvency. Consulting with a financial advisor is recommended to fully assess the implications of these liabilities and make an informed investment decision.