What was the total net liability for Bimbo Foods Bakeries Distribution as of December 31, 2023?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
ries. As of December 31, 2024, 2023 and 2022, the value of such letters of credit is $2,471, $3,822 and $4,515, respectively. Furthermore, the value of these surety bonds as of December 31, 2024, amounts to $1,979.
-
- As of September 2019, the Company acts as guarantor in voluntary payment program in North America between the suppliers and Bank of America, under which the suppliers discount their invoices. As of December 31, 2024, 2023 and 2022, the balance of $1,924, $1,826 and $2,813, respectively, under this program is presented as part of trade payables. This program does not modify the original credit terms with suppliers.
-
- The Company has created a trust that allows suppliers of its subsidiaries in Mexico to obtain financing through a factoring program operated by Nacional Financiera, S.N.C. (Nafinsa).
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, as of December 31, 2023, the company had several specific liabilities related to guarantees and voluntary payment programs. These included letters of credit valued at $3,822, a balance of $1,826 under a voluntary payment program with suppliers and Bank of America, and a liability payable to Nafinsa (Nacional Financiera, S.N.C.) totaling $2,355 through a factoring program for its subsidiaries in Mexico. Additionally, Bimbo Foods Bakeries Distribution had a liability of $18 with Banco Santander México, S.A. for invoice discounts for suppliers of its subsidiaries in Mexico.
These figures represent specific financial obligations of Bimbo Foods Bakeries Distribution as of the end of 2023 related to guarantees and supplier financing programs. It is important to note that these liabilities do not modify the original credit terms with suppliers, indicating that these programs are designed to facilitate payments without altering the underlying agreements.
Beyond these specific liabilities, the document also mentions a net financial liability of $33 related to a virtual wind and solar energy supply agreement in Canada as of December 31, 2024. While this figure is for 2024, it indicates the presence of such liabilities. The FDD does not provide a single, aggregated "total net liability" figure for Bimbo Foods Bakeries Distribution as of December 31, 2023. A prospective franchisee would need to consolidate the liabilities from different programs and agreements to arrive at a more comprehensive understanding of the company's total liabilities for that period.
To gain a complete understanding of Bimbo Foods Bakeries Distribution's financial obligations, a potential franchisee should request a full balance sheet and income statement from the franchisor. This will provide a detailed overview of all assets, liabilities, and equity, allowing for a thorough assessment of the company's financial health and stability.