What was the amount of additions charged to expense for Brain Balance in 2023?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| The activity in the allowance for credit losses is as follows: | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Balance - January 1 | $ | - $ | 3,938 $ | 3,938 |
| Additions charged to expense | 59,741 | 5,560 | - | |
| Deductions/Write-offs | (29,978) | (9,498) | - | |
| Balance - December 31 | $29,763 $ | - $ | 3,938 |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the additions charged to expense in 2023 were $5,560. This figure reflects an increase from 2022, when there were no additions charged to expense.
This expense is related to the allowance for credit losses, which is an estimate of the amount of accounts receivable that Brain Balance may not be able to collect. The additions charged to expense represent the increase in this allowance during the year. This can be influenced by factors such as changes in the creditworthiness of franchisees or changes in Brain Balance's collection policies.
For a prospective franchisee, this information provides insight into Brain Balance's financial management and its approach to handling potential credit losses. While not a direct cost to franchisees, understanding how Brain Balance manages its finances can be an important part of evaluating the overall stability and health of the franchise system.