What was Deck Medic's net accounts receivable 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 company's net accounts receivable in 2021 was $42,199. This figure represents the amount of money that was owed to Deck Medic after subtracting an allowance for doubtful accounts.
The gross accounts receivable in 2021 was $42,199, with an allowance for doubtful accounts of $7,125 deducted to arrive at the net figure. In comparison, the initial franchise fees receivable was $28,955 and royalties receivable was $13,244 in 2021.
Prospective franchisees should understand how Deck Medic manages its accounts receivable, as it can impact the company's overall financial health. Monitoring the allowance for doubtful accounts is also important, as a significant increase could indicate potential issues with collecting payments from franchisees or customers.