What was the change in notes receivable for Cool Binz in 2022 (as restated)?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
r events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
March 19, 2025
Consolidated Balance Sheets (dollars in thousands)
| December 31, | 2024 | 2023 | 2022 (as restated) | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the notes receivable, current portion net of allowance, was $1,661 as of December 31, 2022 (as restated). In 2023, this figure was $639, and by 2024, it decreased further to $578.
This indicates a significant decrease in the notes receivable from 2022 to 2024. Notes receivable typically represent money owed to Cool Binz by customers or franchisees. A decrease could suggest a change in payment terms, more efficient collection efforts, or fewer instances of extending credit.
For a prospective franchisee, this trend is important because it reflects the financial dynamics within the Cool Binz system. While lower notes receivable might indicate better cash flow management, it could also reflect stricter credit policies for franchisees or customers. It would be prudent for a potential franchisee to inquire about the reasons behind this change and its potential impact on their business operations and financial obligations.