What was Deck Medic's net accounts receivable in 2022?
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 for the year 2022 was $28,987. This figure represents the total amount of money owed to Deck Medic by its customers and franchisees, minus an allowance for potential uncollectible accounts.
Specifically, the gross accounts receivable, which includes initial franchise fees and royalties receivables, totaled $41,752 in 2022. However, Deck Medic also accounted for an allowance for doubtful accounts, which was ($12,765). After subtracting this allowance from the gross accounts receivable, the resulting net accounts receivable is $28,987.
For a prospective Deck Medic franchisee, understanding the franchisor's accounts receivable can provide insights into the financial health and stability of the company. A higher net accounts receivable might indicate strong sales and revenue generation, but it's also important to consider the allowance for doubtful accounts, as this reflects the company's expectations regarding potential uncollectible amounts. Franchisees may want to inquire about Deck Medic's credit policies and collection procedures to better understand how the company manages its accounts receivable and minimizes the risk of bad debt.