What is the condition regarding the payment of amounts due for Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable are recorded at the amount the Company expects to collect on balances outstanding at year end. An allowance for doubtful accounts is recorded based on a combination of write-off history or any known troubled accounts. Accounts are monitored closely and delinquencies are determined based on payment history. Accounts are written off when they are determined to be uncollectible. Accounts receivable has not been reduced by an allowance at this time, all are deemed collectible by management.
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
The 2025 Burneys Sweets More FDD discusses accounts receivable and how the company manages potential uncollectible accounts. Specifically, DMG Burney, Inc. records accounts receivable at the amount they expect to collect on outstanding balances at year-end.
An allowance for doubtful accounts is established based on write-off history or any known troubled accounts. The accounts are closely monitored, and delinquencies are determined based on payment history. Accounts are written off when they are deemed uncollectible by management.
As of the financial statement dates, accounts receivable have not been reduced by an allowance, as management considers all accounts collectible. This indicates that Burneys Sweets More aims to proactively manage and account for potential non-payments, but at the time of the financial statements, they believed all outstanding amounts would be collected.