What was the amount of franchise fees receivable, net, for Boulder Designs in 2023?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ess of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonab
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchise fees receivable, net, for the year 2023 was $553,156. This figure represents the amount of franchise fees that Boulder Designs had earned but not yet collected as of the end of that fiscal year. Franchise fees receivable is considered a current asset on the company's balance sheet.
For a prospective franchisee, this number provides insight into the financial health and revenue streams of Boulder Designs. A significant increase in franchise fees receivable could indicate growing sales and franchise expansion. However, it could also signal potential issues with franchisees paying their fees on time. Therefore, it's essential to consider this figure in conjunction with other financial metrics and trends.
It is important to note that franchise fees receivable are subject to potential credit losses. Boulder Designs maintains an allowance for credit losses, which is their best estimate of the amount of probable credit losses in their existing receivables. The company reviews this allowance monthly and charges off account balances against the allowance after exhausting all collection means and determining that recovery is remote. Understanding how Boulder Designs manages its receivables and allowances can give franchisees a clearer picture of the company's financial management practices.