For Best Brains, what is the total of 'Other 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 | |
| 11 | Total | 276,415.25 | 80,489.91 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the total 'Other Liabilities' as of December 31, 2023, was $276,415.25. This figure is part of the current liabilities reported in the financial statements. It's important to note that this total includes several sub-categories of liabilities.
Specifically, the $276,415.25 is the 'Total' of 'Other Current Liabilities', which is comprised of 'Credit Card Liabilities' totaling $82,455.73, 'Franchise fees advance' of $162,500.00, 'Audit fees Payable' of $19,050.00, and 'Total Payroll liabilities' of $12409.52. These figures provide a detailed breakdown of the obligations Best Brains had at the close of 2023.
Prospective franchisees should understand that these liabilities reflect Best Brains' financial obligations at a specific point in time. Reviewing these figures in comparison to previous years and alongside other financial metrics can provide insights into the company's financial health and stability. It is also important to understand what these liabilities are comprised of, such as franchise fee advances, audit fees payable and payroll liabilities.
Understanding the nature and extent of these liabilities can help a potential franchisee assess the financial risks and obligations associated with investing in a Best Brains franchise. Consulting with a financial advisor to interpret these financial statements is advisable.