What is included in accounts receivable for Cr3 American Exteriors?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
s are deposits in-transit from banks for payments related to third-party credit card and debit card transactions.
Financial Instruments
For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable, long term notes receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their short maturities.
Accounts Receivab
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, accounts receivable are amounts due based on the terms of executed franchise agreements for franchise sales, royalty fees, and other revenues. These receivables are carried at the original invoice amount, minus any estimated allowance for doubtful receivables, which is based on a review of outstanding amounts.
As of December 31, 2024, Cr3 American Exteriors had accounts receivables totaling $312,709, and all of these accounts were considered collectible at that time. This indicates that Cr3 American Exteriors believes it will receive the full amount of these outstanding invoices.
For a prospective franchisee, this information provides insight into how Cr3 American Exteriors manages and values its accounts receivable. It also shows the scale of outstanding payments the company expects to collect. Understanding these accounting practices can help a franchisee assess the financial health and stability of the franchisor.