What were the total current liabilities for Best Brains as of December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Current Liabilities | ||
| Account and credit card payable | 4,116,083 | 3,545,720 |
| Mortgages, notes, bonds payable within 1 year | 157,834 | 50,129 |
| Deferred franchise revenue - Current | 111,920 | 45,025 |
| Other current liabilities | 157,392 | 170,701 |
| Total Liabilities | 4,543,229 | 3,811,576 |
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 current liabilities as of December 31, 2023, were $3,811,576. Current liabilities are obligations due within one year, representing the debts and financial responsibilities Best Brains needed to satisfy in the short term. These liabilities include accounts payable, credit card payable, mortgages, notes, bonds payable within one year, deferred franchise revenue, and other current liabilities.
For a prospective Best Brains franchisee, understanding the franchisor's current liabilities is crucial for assessing its financial stability and operational efficiency. A high level of current liabilities relative to current assets may indicate potential liquidity issues, which could impact the franchisor's ability to support its franchisees. Conversely, manageable current liabilities suggest that Best Brains is effectively managing its short-term obligations.
It is important to note that the FDD also lists the components of these liabilities. For example, "Other Current Liabilities" are further broken down in another table. Reviewing these components gives a more detailed picture of the obligations Best Brains has. A prospective franchisee should analyze these figures in conjunction with Best Brains' assets and overall financial performance to gain a comprehensive understanding of the company's financial health. Consulting with a financial advisor is recommended to properly interpret these financial statements and their implications.