What was the total amount of Best Brains' payroll liabilities as of December 31, 2022?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the total payroll liabilities as of December 31, 2022, were $0.00. This figure is part of the company's balance sheet, which provides a snapshot of its financial position at a specific point in time.
For a prospective franchisee, understanding the franchisor's liabilities is crucial. Payroll liabilities represent amounts owed to employees for services already rendered, such as wages, salaries, and related taxes. A low or zero balance in payroll liabilities, as was the case for Best Brains in 2022, could indicate efficient management of payroll or that payroll obligations are promptly settled.
However, it is important to consider this figure in conjunction with other financial metrics and trends. A sudden decrease in payroll liabilities could also raise questions about potential cost-cutting measures or changes in staffing levels. Therefore, a potential franchisee should investigate the reasons behind this figure and how it aligns with the overall financial health and operational strategies of Best Brains.