What was the provision for credit losses for Boulder Designs as of December 31, 2023?

According to Boulder Designs' 2025 Franchise Disclosure Document, the provision for credit losses as of December 31, 2023, was $30,799. This figure represents an estimate of potential losses from uncollectible franchise fees receivable. The allowance for credit losses is a contra-asset account used to reduce the gross amount of accounts receivable to the amount expected to be collected.

For a prospective Boulder Designs franchisee, this indicates that the franchisor acknowledges some risk in collecting all franchise fees due. The provision for credit losses is an expense that impacts Boulder Designs' profitability. The company reviews its allowance for credit losses monthly and individually reviews balances past due over 90 days and over a specified amount for collectability.

Charge-offs, representing actual uncollectible amounts, totaled $30,799 in 2023. The beginning balance of the allowance for credit losses at the start of 2023 was $19,983, and the end of period balance was $19,983. Understanding the credit loss history can give franchisees insight into the financial stability and risk management practices of Boulder Designs.