How often does Boulder Designs review its allowance for credit losses?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| 97,522 | 151 | 511 |
See accompanying notes to financial statements.
Notes to Financial Statements
December 31, 2024, 2023 and 2022
(1) Summary of Significant Accounting Policies
(a) Description of Business
Boulder Designs Franchising, LLC (the "Company"), a company organized in the state of Texas in September 2017, operates as a franchisor of the Boulder Designs franchise concept in the United States of America. The Company has approximately 110 franchised outlets.
(b) Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equiv
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the company reviews its allowance for credit losses monthly. Franchise fees receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses represents Boulder Designs' best estimate of potential credit losses from existing receivables.
In assessing collectability, Boulder Designs specifically reviews balances past due over 90 days and over a specified amount individually. After exhausting all collection efforts and determining that recovery is unlikely, account balances are charged off against the allowance.
For prospective franchisees, this indicates that Boulder Designs actively manages its receivables and has a process in place to account for potential losses. This may provide some assurance that the company is diligent in its financial practices. The opening balance for the contract asset, franchise fees receivable, for 2023 was $100,635.