What was the amount of royalties receivables for Deck Medic in 2021?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
tely $110,883 and $125,496 in cash in its operating bank account respectively.
4. ACCOUNTS RECEIVABLES
At the years ended December 31, 2022 and 2021, Accounts Receivables consisted of the following:
| 2022 | 2021 | |
|---|---|---|
| initial franchise fees receivables | $25,530 | $28,955 |
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the royalties receivables for 2021 were $13,244. This figure represents the amount of royalty fees that Deck Medic had earned but not yet collected from its franchisees as of December 31, 2021.
For a prospective franchisee, understanding the franchisor's receivables can provide insight into the financial health and stability of the franchise system. While royalties receivables are a normal part of business, a significant increase in this number could indicate potential issues with franchisees' ability to pay or with the franchisor's collection efforts.
It's important to note that this figure is just one component of Deck Medic's overall financial picture. A prospective franchisee should review the complete financial statements and consult with a financial advisor to gain a comprehensive understanding of the franchisor's financial condition and performance.