What was the reported amount for Buona's accounts receivable in 2024?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
re any franchises and no franchises have been opened during the year.
NOTE 4 – CONTRACT BALANCES:
Contract liabilities relate to advance consideration received from franchise owners at contra
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the company's accounts receivable in 2024 was reported as $ -.
This indicates that Buona either had no outstanding receivables from its franchisees or other parties at the end of the 2024 fiscal year, or that any receivables were deemed immaterial and not separately reported. Accounts receivable primarily consist of fees due from franchisees. Buona reports these receivables at the amount that management expects to collect.
It is important to note that while the accounts receivable balance was reported as zero, Buona does monitor these balances closely and estimates allowances for potential credit losses. However, the FDD states that these allowances have not been material, suggesting that Buona has been effective in collecting outstanding fees from its franchisees.
A prospective franchisee should inquire about the typical payment terms for fees and royalties, as well as the procedures Buona has in place to manage and collect accounts receivable. Understanding these practices can provide insight into the financial relationship between Buona and its franchisees.