What was the total amount of accrued expenses and other liabilities for Carvel as of December 29, 2024?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
1,748 and $1,143 in 2024 and 2023, respectively | | 44,272 | 37,049 | | Inventories | | 1,128 | 978 | | Prepaid expenses and other current assets | | 12,118 | 9,263 | | Advertising funds assets | | 9,927 | 7,643 | | Intercompany receivables from Parent | | 3,277 | 3,277 | | Total current assets | | 115,063 | 110,454 | | Property, equipment, leasehold improvements and land, net | | 71,417 | 71,199 | | Operating lease assets, net | | 62,676 | 69,535 | | Goodwill | | 122,714 | 122,714 | | Intangible assets, net | | 496,479 | 495,389 | | Long-term other assets | | 13,986 | 13,305 | | Total assets | $ | 882,335 | $ 882,596 |
Consolidated balance sheets (cont'd)
| December 29, 2024 | December 31, 2023 | |
|---|---|---|
| Liabilities and Member's Deficit | ||
| Current liabilities: | ||
| Accounts payable | $ 5,320 | $ 8,395 |
| Accrued expenses and other liabilities | 81,587 | 75,840 |
| Income taxes payable | 3,851 | 7,620 |
| Advertising funds liabilities | 8,418 | 8,942 |
| Current portion of deferred revenue | 3,688 | 3,149 |
| Current portion of operating lease liabilities |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, as of December 29, 2024, Carvel's accrued expenses and other liabilities totaled $81,587. This figure represents the company's short-term financial obligations, which are expected to be settled within the next year. These liabilities can include items such as unpaid wages, taxes, interest, and other operational costs that have been incurred but not yet paid.
For a prospective Carvel franchisee, understanding the franchisor's accrued expenses and other liabilities can provide insights into the company's short-term financial health and stability. A high level of accrued liabilities might indicate that Carvel is managing its cash flow tightly or is facing some short-term financial pressures. Conversely, a lower level could suggest a stronger immediate financial position.
It's important to note that this figure is just one component of Carvel's overall financial picture. Franchisees should consider this number in conjunction with other financial metrics, such as total assets, total liabilities, and revenue, to gain a comprehensive understanding of the company's financial standing. Additionally, comparing this figure to previous years can reveal trends and potential areas of concern or improvement.
Prospective franchisees should also review the notes to the financial statements in the FDD, which may provide further details about the specific types of accrued expenses and other liabilities included in this total. Consulting with a financial advisor is recommended to fully assess the implications of these liabilities for the franchisee's investment decision.