What was the less current portion for Chem Dry in 2023?

According to Chem Dry's 2024 Franchise Disclosure Document, the notes receivable net of current portion and allowance was $1,336 in 2023. This figure represents the amount of money due to Chem Dry from the sale of franchises, area franchise rights, and refinanced obligations, minus the current portion and an allowance for potential credit losses. These notes are amounts due in monthly payments with imputed interest from 3.4 to 18.0 percent, and are collateralized by the franchise, equipment, and personal guarantees.

For a prospective Chem Dry franchisee, understanding the notes receivable is important because it reflects the financial arrangements Chem Dry has with its franchisees. The long-term portion indicates the amounts that are not expected to be collected within the next year. The notes receivable are related to the financing that Chem Dry provides to its franchisees.

The notes are collateralized by the franchise itself, the equipment used in the business, and personal guarantees from the franchisees. This provides Chem Dry with a degree of security in the event of default. The allowance for credit losses represents Chem Dry's estimate of the amount of notes receivable that may not be collectible. This allowance reduces the net value of the notes receivable on Chem Dry's balance sheet.

It is important to note that these figures are part of Chem Dry's overall financial health, and prospective franchisees should consider these numbers in the context of the company's complete financial statements. Reviewing these figures can provide insight into the financial stability and lending practices of Chem Dry.