What was the balance of accounts receivable for Big Apple Bagels at November 30, 2023?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the balance of accounts receivable at November 30, 2023, was $40,786. This figure represents the amount of money owed to BAB Systems, Inc. by its franchisees and other related parties as of that date. Accounts receivable primarily consist of royalty payments that are due weekly, representing billed and unbilled amounts.

It is important to note that this balance is a snapshot in time and can fluctuate due to various factors, such as the timing of payments from franchisees and any changes in sales or royalty rates. Additionally, the FDD mentions that Big Apple Bagels adopted FASB ASC Topic 326, Financial Instruments - Credit Losses, which requires the company to measure expected credit losses on financial instruments. This means that Big Apple Bagels must establish reserves against account balances of franchisees deemed at-risk, which could impact the overall accounts receivable balance.

Prospective franchisees should understand how accounts receivable are managed and collected, as this can impact the franchisor's financial stability and ability to provide support to its franchisees. Understanding the payment terms, collection policies, and any potential risks associated with accounts receivable can help franchisees make informed decisions about their investment in a Big Apple Bagels franchise.

In addition to the overall accounts receivable balance, the FDD also provides details on specific types of receivables, such as franchise-related accounts receivable, notes receivable, and lease receivables. These figures can provide further insight into the nature of the company's receivables and the potential risks associated with each type.