What was the provision for doubtful accounts for Bw Premier Collection in 2023 (in thousands)?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2023 | 2022 |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Excess of revenues over expenses | $ 89,020 | $ 87,769 |
| Adjustments to reconcile excess of revenues over | ||
| expenses to net cash provided by operating activities: | ||
| Depreciation and amortization | 18,162 | 14,748 |
| Provision for doubtful accounts | 794 | (1,650) |
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the provision for doubtful accounts in 2023 was $794,000. This figure is part of the adjustments made to reconcile the excess of revenues over expenses to net cash provided by operating activities. It represents an estimate of the amount of accounts receivable that Bw Premier Collection may not be able to collect.
The provision for doubtful accounts is a contra-asset account that reduces the total amount of accounts receivable reported on the balance sheet. It reflects the company's assessment of the credit risk associated with its outstanding invoices. An increase in the provision for doubtful accounts suggests that Bw Premier Collection anticipates a higher risk of non-payment from its customers, while a decrease suggests the opposite.
For a prospective franchisee, this information provides insight into Bw Premier Collection's financial management and its approach to handling potential losses from uncollectible accounts. It's important to note that this provision is an estimate and the actual amount of uncollectible accounts may differ. Reviewing this trend over several years, as presented in the FDD, can offer a more comprehensive understanding of the company's credit risk management.