What was the total value of accounts receivable for Crowne Plaza in the earlier year presented in the table?
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 | |
| Contract assets | 20,005 | 18,178 | |
| Contract costs | 2,811 | 2,731 | |
| Net investment in subleases (Note 6) | 2,418 | 1,463 | |
| Current investments in unconsolidated entities (Note 10) | 3,513 | – | |
| Prepaid and other current assets | 97,399 | 79,950 | |
| Total current assets | 801,328 | 695,193 | |
| Investments in unconsolidated entities (Note 10) | 206,939 | 181,087 | |
| Deferred compensation plan investments | 285,953 | 249,969 | |
| Property and equipment, net (Note 3) | 431,771 | 493,445 | |
| Operating lease right-of-use assets, net (Note 6) | 46,384 | 52,209 | |
| Goodwill and intangible assets, net (Note 5) | 1,698,486 | 1,703,043 | |
| Contract assets | 343,879 | 254,176 | |
| Contract costs | 54,190 | 49,357 | |
| Notes receivable (Note 11) | 33,999 | 23,201 | |
| Net investment in sublease (Note 6) | 5,074 | 4,359 | |
| Other assets | 13,185 | 1,431 |
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the total value of accounts receivable, less allowance for expected credit losses, was $350,486 at December 31, 2023. This figure represents the amount of money owed to Crowne Plaza by its customers or other parties for services rendered or goods sold on credit. The allowance for expected credit losses is an estimate of the amount of accounts receivable that Crowne Plaza does not expect to collect.
Accounts receivable is a crucial asset for Crowne Plaza, as it reflects the efficiency of its credit and collection policies. A higher accounts receivable balance may indicate that Crowne Plaza is having difficulty collecting payments from its customers, which could negatively impact its cash flow. Therefore, Crowne Plaza needs to carefully manage its accounts receivable to ensure timely collection of payments.
For a prospective franchisee, understanding the accounts receivable management practices of Crowne Plaza is essential. It provides insights into the financial health and stability of the franchise system. Franchisees should inquire about the typical credit terms offered to customers, the procedures for collecting overdue payments, and the historical trends in accounts receivable and bad debt expenses.