What was the total amount of Best Brains' payroll liabilities as of December 31, 2023?
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, 2023, were $12,409.52. This figure represents the amount Best Brains owed to its employees or related entities for payroll-related obligations at the close of the fiscal year. In the context of financial statements, liabilities are obligations that a company owes to others, and payroll liabilities specifically relate to wages, salaries, and associated taxes or deductions.
For a prospective franchisee, understanding the franchisor's financial liabilities can provide insights into the financial stability and management practices of Best Brains. A manageable level of payroll liabilities suggests that Best Brains is current with its employee compensation and related obligations.
However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks to assess the overall financial health of Best Brains. Franchisees may want to compare this figure with previous years or with similar companies in the education franchise sector to determine if the payroll liabilities are within an acceptable range.