What was the change in franchise fees receivable for Boulder Designs in 2023?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
135,967 | 183,606 | | General and administrative expenses | 1,250,875 | 1,301,065 | 1,266,488 | | | 2,192,873 | 2,251,831 | 2,055,860 | | Operating income (loss) | 136,924 | (662,471) | 108,254 | | Interest expense | (14,073) | (21,578) | (4,884) | | Other expense | (28,000) | (31,696) | (36,241) | | Net income (loss) | 94,851 | (715,745) | 67,129 | | Member's deficit, beginning of year | (3,810,894) | (2,996,967) | (2,779,329) | | Contributions from member | 87,889 | 259,214 | 403,269 | | Distributions to member | (493,883) | (357,396) | (688,036) | | Member's deficit, end of year | $ (4,122,037) | (3,810,894) | (2,996,967) |
Statements of Cash Flows
Years Ended December 31,
| _ | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 94,851 | (715,745) | 67,129 |
| Adjustments to reconcile net income (loss) to net | · | , , , | · | |
| cash from operating activities: | ||||
| Depreciation and amortization | 25,731 | 24,988 | 25,680 | |
| Provision fo |
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 decreased by $503,303 in 2023. This figure is part of the cash flow statement, specifically within the changes in operating assets and liabilities section. This indicates a significant reduction in the amount of franchise fees that Boulder Designs was owed but had not yet collected during that year.
For a prospective Boulder Designs franchisee, this information is relevant because it reflects the company's financial management and cash flow trends. A large decrease in franchise fees receivable could suggest a more aggressive approach to collecting outstanding fees, changes in payment terms offered to franchisees, or potentially issues with franchisees fulfilling their payment obligations. Understanding the reasons behind this change can provide insights into the financial health and stability of the franchise system.
It's important to note that this figure is part of a broader financial statement, and should be considered alongside other financial data to gain a comprehensive understanding of Boulder Designs' financial performance. A prospective franchisee should inquire about the reasons for this significant change and how Boulder Designs manages its franchise fee collections to ensure a clear understanding of the company's financial practices.