What was the amount of accounts receivable from franchisees for Burros Fries as of January 1, 2022?

According to Burros Fries's 2024 Franchise Disclosure Document, the accounts receivable from franchisees were $12,442 as of January 1, 2022. Additionally, the franchise fees receivable from franchisees were $8,750 at the same date. These receivables represent money owed to Burros Fries by its franchisees.

Accounts receivable are amounts due to Burros Fries for goods or services already provided, while franchise fees receivable specifically relate to short-term financing of franchise fees due upon signing the franchise agreement. The FDD notes that these receivables are recorded at net realizable value, meaning the amount that Burros Fries expects to actually collect. Management considered all receivables to be collectible as of December 31, 2022.

For a prospective franchisee, this information provides insight into the financial relationship between Burros Fries and its franchisees. It shows the extent to which franchisees rely on short-term financing for franchise fees and the amounts they typically owe to Burros Fries. Monitoring these figures over time can reveal trends in franchisee financial health and the effectiveness of Burros Fries's collection efforts.