What was the amount of Chem Dry's deferred commissions in 2022?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.
March 22, 2024
Consolidated Balance Sheet
December 31, 2023, 2022, and 2021
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| (As Restated) | |||
| Assets |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the company's deferred commissions in 2022 were $1,155,000. This figure is part of the company's assets, specifically listed under 'Other Assets' in the consolidated balance sheets. The amounts are presented with thousands omitted.
Deferred commissions typically represent expenses that Chem Dry has paid upfront but will recognize over a future period. For a prospective franchisee, this specific figure may not directly impact their day-to-day operations. However, it provides insight into Chem Dry's financial management and how it accounts for commission expenses.
Understanding the asset structure of Chem Dry can be useful for potential franchisees to assess the financial stability and practices of the franchisor. Reviewing these figures in comparison to previous years (2021 and 2023 are also provided) can show trends and provide a more comprehensive view of the company's financial health.