What was the amount of charge-offs for Boulder Designs as of December 31, 2024?

According to Boulder Designs' 2025 Franchise Disclosure Document, the charge-offs as of December 31, 2024, amounted to $32,644. This figure represents the amount of uncollectible franchise fees receivable that Boulder Designs has written off during the year. Charge-offs are a normal part of business operations, especially when extending credit or offering payment plans to franchisees.

The FDD also provides a historical context by including the charge-offs for the previous year. In 2023, Boulder Designs had charge-offs of $30,799. This information allows potential franchisees to see how the company's charge-off amounts have trended over the past two years. A significant increase in charge-offs could indicate potential issues with franchisee financial stability or the franchisor's credit policies.

It is important to note that the allowance for credit losses is the company's best estimate of potential credit losses from existing receivables. Boulder Designs reviews this allowance monthly, and balances past due over 90 days are individually reviewed for collectability. This proactive approach to managing credit losses can help minimize the impact of charge-offs on the company's financial performance. Recoveries of previously charged-off amounts are also tracked, although the FDD indicates there were no recoveries in either 2023 or 2024.