For Best Brains, what is the total of 'Credit Card 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the total credit card liabilities as of December 31, 2023, amounted to $82,455.73. This figure represents the sum of several credit card accounts held by Best Brains at various financial institutions, including Bank of America, Chase, and Citibank. These liabilities reflect outstanding balances on these credit cards as of the specified date.
For a prospective franchisee, understanding the franchisor's liabilities can provide insights into the financial management and health of Best Brains. A high level of credit card liabilities might indicate reliance on short-term financing or potential cash flow challenges. However, it's essential to consider these liabilities in the context of the company's overall financial position, including its assets and revenues.
It is also important to note that the FDD also lists the credit card liabilities as of December 31, 2022, which totaled $62,489.91. The increase in credit card liabilities from 2022 to 2023 could be a point of inquiry for potential franchisees, as it may reflect changes in the company's spending or financing strategies. Prospective franchisees should seek clarification from Best Brains regarding the nature and purpose of these credit card liabilities to gain a comprehensive understanding of the company's financial practices.