What were the accounts receivable balances, included in contract assets, for Bonchon as of December 31, 2024?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**
Subsequent events
In accordance with FASB ASC 855, Subsequent Events, the Company has evaluate
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the contract assets include accounts receivable. As of December 31, 2024, the accounts receivable balance for Bonchon was $303,717. This figure is part of a trend, with balances of $283,348 and $250,837 for the years 2023 and 2022, respectively.
For a prospective Bonchon franchisee, understanding these figures is crucial for assessing the financial health and stability of the franchise system. Accounts receivable represent money owed to Bonchon by its franchisees or other parties. A higher accounts receivable balance could indicate that Bonchon is extending more credit to its franchisees, or it could signal potential issues with franchisees paying their dues on time.
It's important to note that these figures reflect the financial performance of Bonchon Franchise, LLC, the entity offering the franchise, and not necessarily the performance of individual franchise locations. Prospective franchisees should review the complete financial statements and consult with a financial advisor to fully understand the implications of these numbers and how they might affect their investment.