What was the net accounts receivable for Corner Bakery Cafe in 2023?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
elated matters that we identified during the audit.
Daniel P. Balley, CPA, PC
Plano, Texas April 17, 2025
Balance Sheets As of Decemer 31, 2024 and 2023
| _ | 2024 | 2023 | ||
|---|---|---|---|---|
| ASSETS | ||||
| Current assets: | ||||
| Cash | $ | 201,021 | $ | 360,839 |
| Accounts receivable, net | 384,001 | 302,086 | ||
| Due from related parties | 2,268,610 | 1,122,464 | ||
| Prepaid expenses | 4,849 | 10,000 | ||
| Total current assets | 2,858,481 | 1,795,389 | ||
| Noncurrent assets: | ||||
| Ac |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, the net accounts receivable for 2023 was $302,086. Accounts receivable represents the money owed to Corner Bakery Cafe by its customers or franchisees for goods or services already provided. This figure is an important indicator of the company's financial health and its ability to collect payments efficiently.
For a prospective franchisee, understanding the accounts receivable is crucial because it reflects the financial interactions between the franchisor and its franchisees. A higher accounts receivable might indicate potential issues with franchisees' ability to pay or delays in payments, which could affect the franchisor's cash flow. Conversely, a well-managed accounts receivable indicates a healthy and stable financial relationship between Corner Bakery Cafe and its franchisees.
It's also worth noting that the FDD includes details about how Corner Bakery Cafe manages its advertising fund. The company recognizes revenue from advertising fees but also incurs offsetting liabilities and expenses, ensuring that the advertising fund benefits the franchisees and affiliate-owned stores without impacting the company's overall profitability. This transparency in financial reporting can provide reassurance to potential franchisees about the franchisor's financial practices.