Is there a limit to how much of a franchisee's receivables Beyond Juicery Eatery can sell?
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 10 — FINANCING (FDD pages 33–34)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not clear whether Beyond Juicery Eatery places a limit on the amount of a franchisee's receivables that can be sold. The document does discuss accounts receivable in the context of the company's accounting policies. Specifically, it mentions that accounts receivable are stated at net invoice amounts and that the company establishes an allowance for expected credit losses based on factors like the aging of receivables and historical collection trends.
Beyond Juicery Eatery also details its revenue recognition practices, which include franchise fees, royalties, marketing fees, and technology fees. The company recognizes initial franchise fees over the term of the franchise agreement and royalties and marketing fees as the underlying sales occur. This information provides context on how Beyond Juicery Eatery manages its own receivables and revenue streams, but it does not address whether there are any restrictions on a franchisee's ability to sell their receivables.
To fully understand any limitations on the sale of franchisee receivables, a prospective franchisee should directly ask Beyond Juicery Eatery for clarification. This inquiry should cover whether there are any contractual restrictions, required approvals, or other conditions related to selling receivables. Understanding these details is crucial for franchisees to manage their finances effectively and make informed decisions about their business operations.