What was the bad debt expense for Bft for the year ended December 31, 2024?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------------------|---------------------------------|--------------------------------------------------------------------------------| | Revenue, net: | | | | Franchise revenue | $ 160,877 | $ 521 | | Franchise marketing fund revenue | 31,888 | — | | Other service revenue | 11,789 | — | | Total revenue, net | 204,554 | 521 | | Operating costs and expenses: | | | | Costs of franchise revenue | 19,596 | 221 | | Selling, general and administrative expenses | 45 | — | | Impairment of assets | 2,485 | 180 | | Depreciation and amortization | 6,605 | 4,596 | | Marketing fund expense | 25,714 | — | | Total operating costs and expenses | 54,445 | 4,997 | | Operating income (loss) | 150,109 | (4,476) | | Net income (loss) | $ 150,109 | $ (4,476) |
XPOF ASSETCO, LLC CONSOLIDATED STATEMENTS OF CHANGES TO MEMBER'S EQUITY (amounts in thousands)
| 2025 $ | 2,066 |
|---|---|
| 2026 | 2,066 |
| 2027 | 2,064 |
| 2028 | 2,012 |
| 2029 | 1,981 |
| Thereafter | 3,940 |
| Total $ | 14, |
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the bad debt expense for the year ended December 31, 2024, was $29. In comparison, for the period from March 6, 2023 (date of inception) to December 31, 2023, there was no bad debt expense recorded.
Bad debt expense represents the amount of accounts receivable that Bft estimates will not be collected. This can arise from customers' inability to pay or disputes over charges. For a prospective franchisee, a low bad debt expense, such as the $29 reported, suggests effective credit control and collection practices by Bft.
However, it is important to note that this figure is based on Bft's own accounting and may not be representative of what a franchisee might experience. Factors such as local economic conditions and the franchisee's own credit policies can influence bad debt expense. Therefore, prospective franchisees should inquire about the typical bad debt expense experienced by existing franchisees and understand the factors that contribute to it.