What was the amount of accounts receivable - franchise fees for Big Blue Swim School in 2024?

According to Big Blue Swim School's 2025 Franchise Disclosure Document, the accounts receivable balance as of December 31, 2024, was $390,680. This figure represents the total amount of money owed to Big Blue Swim School by its franchisees and other parties for services rendered or products sold on credit. It reflects the outstanding payments that Big Blue Swim School expects to collect in the near future.

For a prospective franchisee, understanding the accounts receivable balance is crucial as it provides insight into the financial health and stability of Big Blue Swim School. A lower accounts receivable balance may indicate efficient collection practices or stricter credit terms, while a higher balance could suggest potential challenges in collecting payments from franchisees. Monitoring this balance over time, as the FDD provides data for 2023 and 2022 as well, can reveal trends in payment behavior and the effectiveness of Big Blue Swim School's financial management.

It is important to note that the accounts receivable balance does not specify the breakdown between franchise fees and other types of receivables. The FDD also mentions "Accounts receivable - related party," which amounted to $1,947 as of December 31, 2024. This represents receivables from affiliated entities, indicating that a portion of the total accounts receivable is due from related parties rather than independent franchisees. A prospective franchisee should inquire about the specific details of the accounts receivable, including the aging of the receivables and the allowance for doubtful accounts, to gain a comprehensive understanding of the credit risk associated with these outstanding balances.

Big Blue Swim School also recorded an allowance for credit losses in the amount of $- as of December 31, 2024. This allowance reflects management's estimate of potential losses from uncollectible accounts. The absence of an allowance for credit losses in 2024 could indicate improved creditworthiness of franchisees or a change in the company's accounting policies. However, it is essential for potential franchisees to assess the credit risk associated with the receivables and understand how Big Blue Swim School manages and mitigates this risk.