What was the amount of write-offs for allowance for credit losses for Big Blue Swim School in 2024?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |||
|---|---|---|---|---|
| Beginning balance | $100,000 | $ | - | |
| Provisions | - | 100,000 | ||
| Write-offs | (100,000) | - | ||
| Recoveries | - | - | ||
| Allowance for credit losses | $ | - | $100,000 |
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the write-offs for allowance for credit losses in 2024 were $100,000. This figure represents the amount of credit losses that Big Blue Swim School deemed uncollectible and wrote off during that year.
For a prospective franchisee, understanding these write-offs can provide insight into the credit risk associated with Big Blue Swim School's receivables. It's important to note that this is a single-year snapshot and may not be representative of long-term trends. Franchisees should consider this information in conjunction with other financial data and industry benchmarks to assess the overall financial health and stability of the franchise system.
It would be prudent for potential franchisees to inquire about the factors contributing to these write-offs, such as the creditworthiness of customers or changes in economic conditions. Additionally, understanding Big Blue Swim School's policies and procedures for managing credit risk and collecting receivables can help franchisees evaluate the effectiveness of the franchisor's financial management practices.