What was the value of 'Trade receivables' for Clear Pest Pros as of December 31, 2023?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Financial Statements (dollars in thousands)**
5. Accounts Receivable
The following is the detail of accounts receivable:
| December 31, | 2024 | 2023 | 2022 |
|---|---|---|---|
| Trade receivables | $ 2,627 | $ 2,880 | $ 5,231 |
| Other | 979 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the value of 'Trade receivables' as of December 31, 2023, was $2,880. This figure represents the gross amount of money owed to Clear Pest Pros by its customers or franchisees for goods or services provided on credit. These receivables are considered assets on the company's balance sheet, reflecting the expectation that Clear Pest Pros will collect these amounts in the future.
However, it's important to note that this is the gross amount. The FDD also lists an 'allowance for credit losses,' which represents the company's estimate of the amount of trade receivables that may not be collectible. As of December 31, 2023, this allowance was $973. The 'Net Accounts Receivable' is calculated by subtracting the allowance for credit losses from the gross trade receivables.
For a prospective franchisee, understanding these figures is crucial. While trade receivables represent potential income, the allowance for credit losses indicates a degree of risk in collecting those revenues. Monitoring these figures over time can provide insights into the financial health and credit management practices of Clear Pest Pros. A significant increase in the allowance for credit losses, for example, might suggest deteriorating credit quality among customers or franchisees.