What were the total royalties received by Best In Class Education Center in 2023?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts Receivable arise primarily from amounts due from franchise owners for continuing fees (Royalties) that are collected monthly and are carried at their estimated collectible amounts. The Company provides an allowance for doubtful collections, which is based upon a review of outstanding accounts receivable, historical collection information, existing economic conditions, and other relevant factors. At the time any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. No allowance for uncollectable accounts was required on December 31, 2023.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Best In Class Education Center's financial statements provide some insight into their revenue collection. The FDD states that accounts receivable arise primarily from amounts due from franchise owners for continuing fees (Royalties) that are collected monthly.
However, the document does not explicitly state the total royalties received by Best In Class Education Center in 2023. Instead, it mentions that no allowance for uncollectible accounts was required on December 31, 2023, which suggests that the company considered all royalty payments collectible during that period.
A prospective franchisee should inquire directly with Best In Class Education Center's management to obtain the specific figure for total royalties received in 2023. This information is crucial for understanding the franchisor's financial performance and the overall health of the franchise system.