What was the balance at the beginning of the period for Chem Dry?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
orthwood Avenue NE | Tacoma | WA | 253-353-0508 | | Jose Mella | 2007 Northwood Avenue NE | Tacoma | WA | 360-339-7577 | | Jose Mella | 20633 74th Avenue East | Spanaway | WA | 253-446-7071 |
| | 2023 | 2022 | 2021 | |---|---|---|---| | Trade receivables | $2,880 | $5,231 | $8,483 | | Other | 431 | 432 | 864 | | Less - Allowance for credit losses | 973 | 2,589 | 3,016 | | Net accounts receivable | $2,338 | $3,074 | $6,331 |
| | 2023 | |---|---| | Balance at beginning of period | $2,990 | | Additions charged to expense | 634 | | Deductions/write-offs | (2,651) | | Balance at end of period | $973 |
| | 2023 | 2022 | 2021 | |-
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the balance at the beginning of the period in 2023 was either $2,990 or $1,746, depending on which table is being referenced. There are two tables in Item 23 that show different balances at the beginning of the period. Both tables also list additions charged to expense, deductions/write-offs, and the balance at the end of the period.
It is important to note that the FDD does not specify what "period" these tables refer to. Without additional context, it is difficult to determine what these figures represent.
A prospective Chem Dry franchisee should ask the franchisor for clarification on what these tables represent and why there are two different beginning balances listed for the same year.