How does Beyond Juicery Eatery determine the allowance for credit losses on notes receivable?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
As disclosed in Note 4, the Company has a note receivable due from a related party that does not bear interest and matures in 2028. The note was created during 2022 and was converted from existing accounts receivable.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Beyond Juicery Eatery addresses notes receivable in Note 4, stating that a note receivable is due from a related party, does not bear interest, and matures in 2028. The note was created during 2022 and was converted from existing accounts receivable. However, the document does not specify how Beyond Juicery Eatery determines the allowance for credit losses on these specific notes receivable.
The FDD does detail how Beyond Juicery Eatery handles allowance for credit losses on trade accounts receivable. The allowance is based on several factors, including the aging of receivables, historical collection trends, charge-offs, current economic conditions, and reasonable forecasts. If Beyond Juicery Eatery is aware of a franchisee or customer's inability to meet their financial obligations, they may individually evaluate the related receivable to determine the allowance for expected credit losses.
Since the FDD does not provide specific details on how Beyond Juicery Eatery determines the allowance for credit losses on notes receivable, it would be prudent for a prospective franchisee to ask the franchisor directly about this process. Understanding the specific criteria and methods used to assess and account for potential losses on notes receivable can provide a clearer picture of the company's financial practices and risk management strategies.