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What was the change in accounts receivable for Bft for the year ended December 31, 2024?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

136 | — | | Deferred costs, current portion | 3,906 | 4,065 | | Total current assets | 18,509 | 12,073 | | Property and equipment, net | 7,898 | 11,102 | | Intangible assets, net | 86,485 | 88,881 | | Deferred costs, net of current portion | 36,935 | 45,350 | | Other assets | 563 | — | | Total assets | $ 150,390 | $ 157,406 | | Liabilities and Member's equity | | | | Current Liabilities: | | | | Accrued expenses | $ 877 | 722 | | Deferred revenue, current portion | 14,307 | 9,918 | | Total current liabilities | 15,184 | 10,640 | | | | | | Deferred revenue, net of current portion | 96,065 | 111,320 | | Total liabilities | 111,249 | 121,960 | | Commitments and contingencies (Note 9) | | | | Member's equity: | | | | Member contribution | 48,542 | 51,612 | | Advances to Member, net (Note 7) | (155,034) | (11,690) | | Retained earnings (accumulated deficit) | 145,633 | (4,476) | | Total member's equity | 39,141 | 35,446 | | Total liabilities and member's equity | $ 150,390 | $ 157,406 |

XPOF ASSETCO, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands)

Year Ended December 31, 2024 For the period March 6, 2023 (date of inception) to December 31, 2023
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 $ 14,129

XPOF ASSETCO, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands)

Year Ended December 31, 2024 For the period March 6, 2023 (date of inception) to December 31, 2023
Cash flows from operating activities:
Net income (loss) $ 150,109 $ (4,476)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation and amortization 6,605 4,596
Bad debt expense 29
Loss from disposal of assets 232
Impairment of assets 2,485 180
Changes in assets and liabilities:
Accounts receivable (5,895)
Prepaid expenses and other current assets (136)
Deferred costs

Source: Item 23 — RECEIPTS (FDD pages 79–265)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, the company's accounts receivable decreased by $5,895 during the year ended December 31, 2024. This figure is derived from the cash flow statement, which shows a change in accounts receivable of ($5,895) as part of the adjustments to reconcile net income to net cash provided by operating activities. This indicates that Bft collected more cash from its customers than it recognized in revenue during that period. For the period March 6, 2023 (date of inception) to December 31, 2023, there was no change listed for accounts receivable.

Additionally, the consolidated balance sheets show the net accounts receivable as $5,874 as of December 31, 2024, and $8 as of December 31, 2023. This balance sheet information provides a snapshot of the outstanding receivables at the end of each year, offering a different perspective from the cash flow statement, which captures the changes during the year. The difference between the $5,874 in 2024 and the $8 in 2023 shows an increase of $5,866 in the net accounts receivable.

Prospective franchisees should understand both the cash flow statement and the balance sheet to get a complete picture of Bft's accounts receivable. The cash flow statement indicates how efficiently Bft is collecting its receivables, while the balance sheet shows the actual amount of outstanding receivables at a specific point in time. A significant increase in accounts receivable could indicate potential issues with collecting payments from customers, which could impact the franchisee's cash flow.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.