What was the accounts receivable amount for Bombs Away Franchising LLC as of December 31, 2023?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company's franchisee receivables primarily result from initial franchise fees, royalty fees, brand development contributions and training fees charged to franchisees. Timing of revenue recognition may be different from the timing of invoicing to customers. The Company records an accounts receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized after invoicing. The Company reports these receivables at net realizable value.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the balance sheet as of December 31, 2023, is included in the financial statements. However, the specific amount for accounts receivable is not detailed in the provided excerpts.
While the excerpts discuss the company's accounting policies regarding franchisee receivables, revenue recognition, and the allowance for doubtful accounts, they do not provide the actual accounts receivable figure for the stated date. The notes to the financial statements explain that franchisee receivables primarily come from initial franchise fees, royalty fees, brand development contributions, and training fees. The company reports these receivables at net realizable value.
To determine the accounts receivable amount, a prospective Bombs Away franchisee should carefully review the complete audited financial statements for December 31, 2023, within Item 21 of the FDD. It would also be prudent to ask the franchisor directly for clarification on this figure and how it has trended over recent periods. Understanding the composition and collectability of these receivables is important for assessing the financial health of Bombs Away.