What were the total accounts receivable for Crepe De Licious in 2023?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the total accounts receivable for 2023 was $100,447. This figure represents the sum of accounts receivable ($73,948) and rebates receivable ($26,499) for that year. Accounts receivable generally include the amounts due to Crepe De Licious from its franchisees and other customers for goods or services already provided. Rebates receivable are amounts the company expects to receive back from suppliers or other entities.

For a prospective franchisee, understanding the accounts receivable trends of Crepe De Licious can provide insights into the financial health and stability of the franchisor. A high or increasing level of accounts receivable might indicate that franchisees are struggling to make payments, which could signal potential risks. Conversely, a stable or decreasing level could suggest a healthy franchise system with franchisees meeting their financial obligations.

It's important to note that in 2023, Crepe De Licious experienced a significant change in the provision for credit losses due to two franchises declaring bankruptcy. While the company believes this to be a one-time event, it highlights the inherent risks associated with extending credit to franchisees. Prospective franchisees should inquire about the franchisor's policies for managing credit risk and supporting franchisees who may be facing financial difficulties.

Reviewing the historical data, such as the accounts receivable for 2022 ($47,680) and 2024 ($80,406), alongside the total accounts receivable for 2023, can offer a more comprehensive understanding of the company's financial performance and any potential fluctuations. This information, combined with other financial metrics and due diligence, can help potential franchisees make informed decisions about investing in a Crepe De Licious franchise.