What was the total amount of current liabilities for Boulder Designs in 2024?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Liabilities and Member's Deficit | ||
| Current liabilities: | ||
| Notes payable | $ 248,000 | 255,000 |
| Current installments of long-term debt | 13,971 | 20,793 |
| Accounts payable | 191,886 | 291,188 |
| Accrued expenses | 293,743 | 188,330 |
| Deferred revenue, current | 909,641 | 843,033 |
| Total current liabilities | 1,657,241 | 1,598,344 |
| Long-term debt, excluding current portion | 571,730 | 528,240 |
| Deferred revenue, net of current portion | 3,111,996 | 2,935,560 |
| Due to related parties | 272,385 | 390,774 |
| Total liabilities | 5,613,352 | 5,452,918 |
| Member's deficit | (4,122,037) | (3,810,894) |
| Total liabilities and member's deficit | $1,491,315 | 1,642,024 |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the total current liabilities for the company in 2024 were $1,657,241. This figure represents the sum of several short-term financial obligations, including notes payable, current installments of long-term debt, accounts payable, accrued expenses, and deferred revenue due within the year.
For a prospective Boulder Designs franchisee, understanding the franchisor's current liabilities is crucial as it provides insight into the company's short-term financial health and stability. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect the franchisor's ability to support its franchisees or invest in system-wide improvements.
Specifically, the major components of Boulder Designs' current liabilities in 2024 included $248,000 in notes payable, $13,971 in current installments of long-term debt, $191,886 in accounts payable, $293,743 in accrued expenses, and $909,641 in deferred revenue. Deferred revenue, in particular, represents payments received for goods or services that have not yet been delivered or rendered, which is a significant portion of their current liabilities.
It is also worth noting that in 2024, Boulder Designs' current liabilities exceeded its current assets by $951,771. This situation indicates a potential strain on the company's short-term financial position. A prospective franchisee should carefully consider these figures and discuss with Boulder Designs how they plan to manage these liabilities and ensure continued support for their franchise system.