What were Chatime's accounts payable and accrued expenses in 2023?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
York
April 18, 2025
CHATIME FRANCHISE LLC (A Limited Liability Company) BALANCE SHEETS DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | ||
|---|---|---|---|
| ASSETS | |||
| Current assets: Cash Accounts and franchise fees receivable Prepaid commissions, current Prepaid expenses Due from member | $ | 144,258 205,053 49,370 5,312 20,108 | $ 5,287 - 6,992 11,950 300,000 |
| Total current assets | 424,101 | 324,229 | |
| Property and equipment, net | 791 | _ | |
| Other assets: Prepaid commissions, net of current | _ | 933,346 | 151,506 |
| TOTAL ASSETS | $ | 1,358,238 | $ 475,735 |
| LIABILITIES AND MEMBER'S EQUITY | / (D I | EFICIT) | |
| Current liabilities: Accounts payable and accrued expenses Deferred revenue, current | $ | 49,272 92,959 | $ 4,015 23,983 |
| Total current liabilities | 142,231 | 27,998 | |
| Long-term liabilities: Due to member Due to affiliates, net Deferred revenue, net of current portion Total liabilities | _ | 60,015 75,928 1,496,404 1,774,578 | 303,012 331,010 |
| Commitments (Notes 7 and 8) | |||
| Member's equity (defic |
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the company's accounts payable and accrued expenses for the year 2023 were $4,015. This figure represents the short-term liabilities Chatime had outstanding to its suppliers and other creditors at the end of that fiscal year.
For a prospective franchisee, understanding the franchisor's accounts payable can offer insights into their financial management and relationships with vendors. A low accounts payable figure, as seen here, might suggest that Chatime promptly pays its obligations, which can be a sign of financial stability. However, it is essential to consider this figure in conjunction with other financial metrics to get a comprehensive view of Chatime's financial health.
It's also worth noting that accounts payable and accrued expenses are typically current liabilities, meaning they are due within a year. Franchisees should be aware of how Chatime manages its short-term obligations, as this could indirectly affect the support and resources available to them. Reviewing the complete financial statements and discussing these figures with a financial advisor is advisable for any potential franchisee.