How does Beyond Juicery Eatery determine the allowance for expected credit losses on accounts receivable?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
operating.
Note 2 - Significant Accounting Policies
Restricted Cash
The Company has restricted cash equal to the amount of unspent advertising funds on deposit. A total of $0, $21,982, and $945 of cash is restricted for that purpose at December 31, 2024, 2023, and 2022, respectively.
Trade Accounts Receivable
Accounts receivable are stated at net invoice amounts. An allowance for expected credit losses is established for accounts receivable based on a combination of factors, including the aging of receivables, historical collection trends, and charge-offs, and includes adjustments for current economic conditions and reasonable and supportable forecasts. When the Company is aware of a franchise or customer's inability to meet its financial obligation, the Company may individually evaluate the related receivable to determine the allowance for expected credit losses. All amounts deemed to be uncollectible are charged against the allowance for expected credit losses in the period that determination is made. The allowance for expected credit losses on accounts receivable balances was $18,563 at December 31, 2024. At December 31, 2023, and 2022, the Company did not record an allowance for credit losses, as the Company determine
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the allowance for expected credit losses on accounts receivable is determined using a combination of factors. These factors include the aging of receivables, historical collection trends, and charge-offs. The company also makes adjustments for current economic conditions and reasonable and supportable forecasts.
If Beyond Juicery Eatery becomes aware of a franchisee or customer's inability to meet their financial obligations, the company may individually evaluate the related receivable to determine the allowance for expected credit losses. Any amounts deemed uncollectible are charged against the allowance for expected credit losses during the period the determination is made.
At the end of 2024, the allowance for expected credit losses on accounts receivable balances was $18,563. In contrast, for the years ending December 31, 2023, and 2022, Beyond Juicery Eatery did not record an allowance for credit losses. This was because the company determined there was minimal risk of credit losses based on historical losses, current conditions, and expected future conditions. The company believed any such credit losses would be insignificant to their financial statements. Consequently, there were no write-offs of trade accounts receivable for the years ended December 31, 2023 and 2022.