What were the accounts receivable for Best In Class Education Center in 2024?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
to be cash equivalents. As of December 31, 2024 and 2023, the Company had approximately $4,056 and $58,720 respectively in cash in its bank accounts.
4. ACCOUNTS RECEIVABLE
As of December 31, 2024 and 2023 accounts receivable consisted of the following:
| Royalty receivable | $ | 15,521 | $ 13,219 |
|---|---|---|---|
| Initial franchise fees receivable | 30,000 | ||
| Transfer fee receivable | 26,000 | 5,000 | |
| Other franchise-related fees receivable | 10,594 | - | |
| Brand fund income receivable | 2,629 | ||
| Total Accounts Receivable | $ | 84,744 | $ 18,219 |
5. RELATED PARTY TRANSACTIONS
BIC Franchise System Corporation and Best in Class Education, LLC are affiliated entities under common ownership. As of December 31, 2024, and 2023, the Compan
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 FDD, Best In Class Education Center had outstanding receivables from its affiliate amounting to $14,527 as of December 31, 2024. These receivables represent shared revenue collected on behalf of BIC Franchise System Corporation. Additionally, Best In Class Education Center had outstanding receivables from its owners amounting to $24,358 as of the same date, representing amounts due from the owners for obligations incurred during the normal course of business. The company also had a balance due to Lam's Tutoring Service, Inc. of $12,747 as of December 31, 2024. Lam's Tutoring Service, Inc. is a company where the same member of Best In Class Education Center also has an ownership interest.
For a prospective franchisee, this indicates that Best In Class Education Center engages in related party transactions that result in accounts receivable. It is important to note that the receivables from the affiliate and owners are specific to shared revenue and obligations incurred during normal business operations. The balance due to Lam's Tutoring Service, Inc. suggests a business relationship where funds are owed between the two entities due to shared ownership.
It is important for a potential franchisee to understand the nature of these related party transactions and how they might affect the financial performance of their franchise. Understanding the details of these relationships and the reasons for the outstanding balances can provide a clearer picture of the company's financial health and practices. A prospective franchisee should seek clarification from Best In Class Education Center regarding the terms and conditions of these related party transactions to fully assess any potential impact on their investment.