What was the amount of equipment held for resale for Crawl Space Ninja as of December 31, 2023?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
findings, and certain internal control–related matters that we identified during the audit.
A&G, LLP
Dallas, Texas April 22, 2024
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 61,886 | $ 317,934 |
| Restricted cash | 28,592 | - |
| Accounts receivable, net | 188,841 | 208,158 |
| Due from affiliate | - | 50,674 |
| Prepaid expenses | 16,801 | 14,648 |
| Note receivable | 29,584 | - |
| Deferred costs | 43,198 | 55,498 |
| Total current assets | 368,902 | 646,912 |
| Property and equipme |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 51)
What This Means (2024 FDD)
According to Crawl Space Ninja's 2024 Franchise Disclosure Document, the company held $25,814 in equipment for resale as of December 31, 2023. This figure represents the value of equipment that Crawl Space Ninja had purchased, presumably from franchisees or other sources, and was holding for potential resale.
For a prospective franchisee, this indicates that Crawl Space Ninja may engage in the practice of buying back equipment. This could be relevant if a franchisee decides to leave the system or upgrade their equipment. However, the FDD does not specify the conditions under which Crawl Space Ninja would purchase equipment, or the criteria used to determine the purchase price.
The fact that the equipment held for resale remained the same from 2022 to 2023 might suggest a stable market for resold equipment within the Crawl Space Ninja system, or it could indicate that the company is having difficulty reselling the equipment it holds. A potential franchisee should inquire about the details of this equipment, the typical resale process, and any associated costs or requirements.
It's important to note that equipment held for resale is stated at the lower value of its carrying amount or fair value net of selling costs. This valuation method ensures that the assets are not overstated on the balance sheet, reflecting a conservative accounting approach. This could impact the actual resale value realized by Crawl Space Ninja.