What was the amount of Cool Binz's trade receivables as of December 31, 2024?

According to Cool Binz's 2025 Franchise Disclosure Document, the trade receivables as of December 31, 2024, were $2,627. This figure represents the amount of money owed to Cool Binz by its customers or clients for goods or services that have been delivered or used but not yet paid for. It is a crucial indicator of Cool Binz's short-term financial health and efficiency in collecting payments.

Trade receivables are a normal part of business operations, especially for franchise systems that extend credit terms to their customers. However, it's important to note that not all receivables may be collectible, which is why Cool Binz also reports an allowance for credit losses. This allowance is an estimate of the amount of receivables that Cool Binz does not expect to collect. As of December 31, 2024, the allowance for credit losses was $878. The net accounts receivable, which is the trade receivables less the allowance for credit losses, was $2,728.

For a prospective Cool Binz franchisee, understanding the trade receivables and the allowance for credit losses is important for assessing the financial stability of the franchise system. It provides insights into how effectively Cool Binz manages its credit and collections. A high level of trade receivables combined with a low allowance for credit losses could indicate aggressive accounting practices or a potential risk of future write-offs. Conversely, a low level of trade receivables suggests efficient collections and strong financial management.

It is also useful to compare these figures over time. The FDD shows that trade receivables were $2,880 in 2023 and $5,231 in 2022. The allowance for credit losses was $973 in 2023 and $4,589 in 2022. The net accounts receivable was $2,338 in 2023 and $3,074 in 2022. These trends can provide further insights into the financial performance and risk profile of Cool Binz.