What was the amount of deductions (write-offs) for Clear Pest Pros in 2023?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
578 | 1,027 | 1,972 | | Long-Term Portion | $ 793 | $ 948 | $ 2,435 |
The activity in the allowance for credit losses is as follows:
| 2024 | 2023* | |
|---|---|---|
| Balance, January 1, Additions charged to expense Deductions (write-offs) | $ $ 1,115 358 (259) | 1,746 292 (923) |
| Balance, December 31, | $ 1,214 \ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, in 2023, the deductions (write-offs) amounted to $923 in one instance and $2,651 in another. These figures appear in the financial statements under Item 21. It's important to note that these deductions are related to specific financial line items, and understanding the context of these deductions is crucial.
The first instance shows deductions (write-offs) of $923 against a beginning balance of $1,746. This results in an ending balance of $1,115. The second instance shows deductions (write-offs) of $2,651 against a beginning balance of $2,990, resulting in an ending balance of $973. These deductions represent a reduction in the company's assets or an increase in its liabilities during that year.
For a prospective Clear Pest Pros franchisee, this information highlights the importance of understanding the company's accounting practices and the nature of these write-offs. It would be prudent to seek clarification from the franchisor or a financial advisor to fully understand the implications of these deductions on the overall financial health of Clear Pest Pros. Understanding these financial details can help a franchisee make a more informed investment decision.