What were the total long-term liabilities for Best Brains as of December 31, 2022?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Loans & Advances | • | 144,439.99 | 140,568.45 |
|---|---|---|---|
| Mortgages ,notes , bonds payable in 1 year or m | iore | 150,000.00 | 150,000.00 |
| Deferred Franchise revenue-long term Total Long Term Liabilities | 91,143.01 385,583.00 | 96,212.40 386,780.85 |
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 long-term liabilities as of December 31, 2022, were $386,780.85. This figure is comprised of two main components: loans and advances totaling $140,568.45, and mortgages, notes, and bonds payable in one year or more amounting to $150,000. Additionally, deferred franchise revenue-long term was $96,212.40.
For a prospective Best Brains franchisee, understanding the franchisor's long-term liabilities can provide insight into the company's financial stability and its ability to meet its long-term obligations. A high level of long-term liabilities might indicate a higher level of financial risk for the franchisor, which could indirectly affect franchisees. For instance, a financially strained franchisor might reduce support services or delay investments in new programs and technologies.
It's important to note that the long-term liabilities include a $150,000 Economic Injury Disaster Loan. This loan was obtained in 2020 and is related to alleviating economic injury caused by the Covid-19 virus. The loan bears interest, and while interest payments have been made, no principal repayments were made in 2024. This detail provides further context to the nature of Best Brains's long-term debt.
Franchisees should consider these liabilities in the context of Best Brains' overall financial health, including its assets, revenues, and other obligations. Comparing these figures with those of other franchise systems can also provide a benchmark for assessing the relative financial stability of Best Brains.