What was the total amount of current liabilities reported by Canine Dimensions in 2022?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | 2023 | 2022 |
|---|---|---|
| CURRENT ASSETS | ||
| Cash | 406,640 | 245,263 |
| FIXED ASSETS | ||
| Automobile | 31,923 | 31,923 |
| Less: Accumulated Depreciation | (23,271) | (19,200) |
| Net Fixed Assets | 8,652 | 12,723 |
| OTHER ASSETS | ||
| Franchise Costs | 40,329 | 40,329 |
| Security Deposit | 9,800 | - |
| Total Other Assets | 50,129 | 40,329 |
| TOTAL ASSETS | 465,421 | 298,315 |
| LIABILITIES AND MEMBER'S EQUITY | ||
| CURRENT LIABILITIES | ||
| Deferred Revenue - Initial Fee, Current | 21,000 | 17,500 |
| Deferred Revenue - Renewal Fee, Current | 700 | 700 |
| TOTAL CURRENT LIABILITIES | 21,700 | 18,200 |
| LONG TERM LIABILITIES | ||
| Deferred Revenue - Initial Fee, Long Term | 100,625 | 90,125 |
| Deferred Revenue - Renewal Fee, Long Term | 2,012 | 2,712 |
| TOTAL LONG TERM LIABILITIES | 102,637 | 92,837 |
| TOTAL LIABILITIES | 124,337 | 111,037 |
| MEMBER'S EQUITY | 341,084 | 187,278 |
| TOTAL LIABILITIES AND MEMBER'S EQUITY | 465,421 | 298,315 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the company's total current liabilities in 2022 were $18,200. This figure is derived from the sum of two specific liabilities: Deferred Revenue from Initial Fees, which amounted to $17,500, and Deferred Revenue from Renewal Fees, which totaled $700.
For a prospective Canine Dimensions franchisee, understanding the franchisor's liabilities is crucial. Current liabilities represent obligations that Canine Dimensions is expected to settle within one year. These liabilities, specifically deferred revenues, reflect payments Canine Dimensions has received for services (initial and renewal fees) that have not yet been fully earned. This is a common accounting practice in franchising, as initial franchise fees are often recognized as revenue over the term of the franchise agreement.
The fact that Canine Dimensions has deferred revenue indicates that it has obligations to provide ongoing services or support to its franchisees in the future. A relatively low level of current liabilities might suggest financial stability, but it is important to consider this in conjunction with other financial metrics, such as total assets, revenues, and long-term liabilities, to get a comprehensive view of Canine Dimensions's financial health. A potential franchisee should analyze these figures to assess the franchisor's ability to support its franchisees and fulfill its contractual obligations.
It is also worth noting that the total liabilities of Canine Dimensions in 2022 were $111,037, with member's equity at $187,278. This provides a broader context for understanding the company's financial structure and its reliance on debt versus equity. Reviewing these figures over several years, as presented in the FDD, can reveal trends and provide a more informed basis for investment decisions.