What were the total liabilities for Cd One Price Cleaners as of December 29, 2023?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
rs, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
April 17, 2025
Cleaners Depot Franchise, LLC Balance Sheet
| December 27, 2024 | December 29, 2023 | |
|---|---|---|
| Assets | ||
| Current assets: Cash Restricted cash Investments | $ 307,583 323,372 3,358,000 | $ 310,463 87,660 2,802,853 |
| Prepaid expenses | 16,265 | 8,862 |
| Total current assets | 4,005,220 | 3,209,838 |
| Property and equipment at cost, less accumulated | ||
| accumulated depreciation and amortization of | ||
| $14,694 at December 27, 2024 ($5,982 at | ||
| December 29, 2023) | 20,412 | 25,445 |
| Operating lease right-of-use asset | 265,156 | 303,616 |
| Security deposits | 6,727 | 6,727 |
| Total assets | $ 4,297,515 | $ 3,545,626 |
| Liabilities and Members' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 91,250 | $ 6,789 |
| Accrued payroll and paid time off | 19,462 | 17,727 |
| Accrued royalty rebate | 197,854 | 186,120 |
| Accrued interest | 19,622 | 61,466 |
| Operating lease liability - current | 43,796 | 40,944 |
| Margin loan | 996,569 | 707,835 |
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the company's total liabilities as of December 29, 2023, were $3,326,113. This figure represents the sum of the company's current liabilities ($1,020,881) and long-term liabilities ($2,305,232) at that date.
Breaking down the current liabilities, the most significant components include a margin loan of $707,835, accrued royalty rebate of $186,120, and accrued interest of $61,466. Accounts payable were relatively low at $6,789, while accrued payroll and paid time off amounted to $17,727, and the current portion of the operating lease liability was $40,944.
The long-term liabilities primarily consist of loans payable amounting to $2,000,000 and a noncurrent operating lease liability of $305,232. The loans payable represent a substantial portion of the company's long-term debt obligations. The operating lease liability reflects the company's obligations for leased properties or equipment extending beyond the current year.
Prospective franchisees should consider the liabilities of Cd One Price Cleaners as part of their due diligence. Understanding the nature and extent of these liabilities can provide insights into the company's financial health and stability. It is also important to note that these figures are from the franchisor's balance sheet and do not reflect the potential liabilities a franchisee may incur when starting their own Cd One Price Cleaners location.