What was the amount of receivables from affiliates for Crowne Plaza as of December 31, 2023?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | |||
|---|---|---|---|
| Current assets: | |||
| Cash and cash equivalents | $ 49,317 | $ 63,805 | |
| Restricted cash | 382 | 2,210 | |
| Accounts receivable, less allowance for expected credit losses of | |||
| $53,457 and $44,963 at December 31, 2024 and 2023, respectively | 393,731 | 350,486 | |
| Receivables from affiliates (Note 13) | 231,752 | 176,120 | |
| Pension assets (Note 9) | – | 250 |
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the receivables from affiliates were $176,120 as of December 31, 2023. This figure represents the amount due to Crowne Plaza from its affiliated entities. These receivables are considered current assets, reflecting their short-term nature and expected conversion to cash within a year. Understanding the financial relationships between a franchisor and its affiliates can provide insight into the overall financial health and stability of the franchise system.
Receivables from affiliates can arise from various transactions, such as shared services, marketing programs, or other inter-company activities. In Crowne Plaza's case, these receivables are deemed fully recoverable based on the Group's creditworthiness, suggesting a low risk of non-payment. This is a positive indicator for prospective franchisees, as it implies that Crowne Plaza has confidence in the financial stability of its affiliates.
For a potential Crowne Plaza franchisee, it's important to understand the nature of these related-party transactions and how they might impact the franchise system. While the FDD provides a snapshot of the receivables from affiliates, further due diligence may be necessary to assess the potential risks and benefits associated with these transactions. Specifically, franchisees may want to inquire about the specific types of transactions that generate these receivables and the policies in place to ensure timely collection.