What was the amount of royalties receivable from franchisees for Burros Fries as of December 31, 2021?

According to Burros Fries's 2024 Franchise Disclosure Document, the royalties receivable from franchisees were $12,442 as of December 31, 2021. This figure represents the amount of royalties that Burros Fries had earned but not yet collected from its franchisees at the end of the year.

For a prospective Burros Fries franchisee, this indicates the franchisor's revenue stream from royalties. It also suggests the scale of outstanding payments the franchisees collectively owed to Burros Fries at that time. This information is part of the overall financial health assessment a potential franchisee should consider.

It's important to note that the receivables are considered collectible by Burros Fries's management, as they have set the allowance for doubtful accounts to zero. This reflects the franchisor's confidence in its franchisees' ability to pay their dues. Franchisees should, however, independently assess the financial stability of the franchise system and the potential for fluctuations in royalty payments.