What was the amount of write-offs charged against the allowance for Crowne Plaza as of December 31, 2023?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
s standard introduces expedients relating to common control lease transactions, effective for financial years beginning after December 15, 2023. There has been no effect on the consolidated balance sheets, consolidated statements of net income or financial statement disclosures in future years.
Future Adoption of Accounting Standards
In December 2023, the FASB issued ASU No. 2023-09, Income taxes (Topic 740): Improvement to Income Tax disclosures. This standard enhances the transparency and decision usefulness of income tax disclosures, effective for financial years beginning after Dece
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the write-offs charged against the allowance for credit losses as of December 31, 2023, were $4,127. This figure reflects the amount of uncollectible accounts or debts that Crowne Plaza has written off during that period. The allowance for credit losses is a contra-asset account used to reduce the book value of accounts receivable to the amount expected to be collected. Write-offs are a normal part of business operations, especially in industries that extend credit to customers.
For a prospective Crowne Plaza franchisee, understanding the level of write-offs can provide insight into the credit risk associated with the brand's customer base or its franchisees. While this specific figure pertains to the overall Crowne Plaza system, it highlights the importance of sound credit management practices. Franchisees should ensure they have robust systems in place to assess creditworthiness, monitor accounts receivable, and manage collections effectively to minimize their own write-offs.
It's also worth noting the beginning and ending balances in the allowance for credit losses. The beginning balance in allowance for credit losses was $52,355 and the ending balance was $44,963 as of December 31, 2023. These figures, along with the write-offs, provide a more complete picture of how Crowne Plaza manages its credit risk and the potential impact on its financial performance. Franchisees may want to inquire about the specific credit policies and procedures they will need to follow as part of the Crowne Plaza system.