What was the total amount of Bonchon's long-term liabilities, net of current portion, in 2024?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current liabilities: | |||
|---|---|---|---|
| Accounts payable and accrued expenses | $458,971 | $577,102 | |
| Due to Parent | - | 9,785 | |
| Due to related parties | 186,723 | 269,970 | |
| Deferred revenues | 298,752 | 333,604 | |
| Total current liabilities | 944,446 | 1,190,461 | |
| Long-term liability: | |||
| Deferred revenues - net of current portion | 2,196,744 | 1,985,966 | |
| Total liabilities | 3,141,190 | 3,176,427 | |
| Commitments and contingencies (Notes 5, 6 and 7) | |||
| Member's equity | 2,799,890 | 2,412,335 | |
| TOTAL LIABILITIES AND MEMBER'S EQUITY | $5,941,080 | $5,588,762 |
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the company's long-term liabilities, net of current portion, totaled $2,196,744 as of December 31, 2024. This figure represents deferred revenues, indicating income that Bonchon has received but not yet earned.
For a prospective franchisee, understanding the franchisor's liabilities is crucial for assessing the financial health and stability of the company. A significant portion of long-term liabilities consisting of deferred revenue suggests that Bonchon has a solid base of future obligations to fulfill, which could be a positive sign.
However, it is important to note that while deferred revenue can indicate future stability, it also represents a commitment to provide services or products in the future. Franchisees should consider this in the context of Bonchon's overall financial strategy and how these obligations might impact the franchisor's ability to support its franchisees. Reviewing the trend in deferred revenues over several years, as well as the total liabilities, can provide a more comprehensive understanding of Bonchon's financial position.
In addition to deferred revenue, it is important to consider the total liabilities of Bonchon, which amounted to $3,141,190 in 2024. This broader figure provides a more complete picture of the company's financial obligations, and should be evaluated in conjunction with the company's assets and equity to determine its overall financial strength.