What was the allowance for credit losses for Crowne Plaza as of December 31, 2021?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
include short-term, interest-bearing securities with original maturities of less than three months.
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Allowance for Credit Losses
Accounts receivable arise from sales to a large number of customers.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the allowance for credit losses as of December 31, 2021, was $11,930,910. This figure represents an estimate of uncollectible accounts receivable that Crowne Plaza held at that time.
It is important to note that this entire amount was released for expected credit losses on January 1, 2022, resulting in an allowance for credit losses of $0 as of December 31, 2022, 2023, and 2024. This indicates a significant change in Crowne Plaza's assessment of its credit risks and collection capabilities during that period.
For a prospective franchisee, understanding these figures and their implications is crucial. It provides insight into Crowne Plaza's financial management and its approach to handling potential credit losses. While this specific allowance may not directly impact a franchisee's operations, it reflects the overall financial health and risk management practices of the company.