What was the total net accounts receivable for Carls as of January 31, 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Accounts receivable, net, as of January 31, 2024 and 2023 consisted of the following: | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Trade receivables......................................................................................................................... | $ 21,364 | $ 20,671 | ||
| Leases receivable......................................................................................................................... | 181 | 206 | ||
| Notes receivable | .......................................................................................................................... | 2,096 | 1,372 | |
| Allowance for credit losses | ......................................................................................................... | (1,893) | (1,550) | |
| Total accounts receivable, net | ..................................................................................................... | $ 21,748 | $ 20,699 |
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total net accounts receivable as of January 31, 2023, was $20,699. This figure represents the sum of trade receivables ($20,671), leases receivable ($206), and notes receivable ($1,372), minus an allowance for credit losses ($1,550).
Accounts receivable are amounts due to Carls from its customers or franchisees for goods or services already provided. The 'net' value means that Carls has already accounted for potential uncollectible amounts (the allowance for credit losses). This gives a more realistic view of what Carls expects to actually receive.
For a prospective franchisee, understanding the accounts receivable is crucial as it reflects the financial health and efficiency of Carls in collecting payments. A significant increase in accounts receivable could indicate potential issues with franchisees paying their dues or a change in payment terms. Therefore, it's a good idea for potential franchisees to monitor these figures over time to assess the financial stability of the franchise system.