What was the reported 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 companies. These receivables are considered current assets on the balance sheet.
Receivables from affiliates are amounts owed to Crowne Plaza by related entities, such as parent companies, subsidiaries, or other entities under common control. These transactions are common in franchise systems where the parent company provides services or resources to its franchisees. The FDD indicates that these receivables are considered fully recoverable based on the Group's creditworthiness.
Understanding the nature and collectability of these receivables is important for prospective franchisees. While the FDD states they are considered fully recoverable, it is prudent to inquire about the specific types of transactions that generate these receivables and the historical collection rates. This information can provide a better understanding of the financial relationship between Crowne Plaza and its affiliates.