What was the total balance of receivables from Dog Haus franchisees as of December 31, 2023?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, 2023, receivables from franchisees were as follows: | |
|---|---|
| Balance at January 1, 2023, as reported | $95,001 |
| Additions | 133,514 |
| Collections | (95,000) |
| Total as of December | $ 133,515 |
| 31, 2023 |
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the balance of receivables from franchisees as of January 1, 2023, was reported as $95,001. Throughout 2023, there were additions of $133,514 and collections of $95,000. Therefore, the total balance as of December 31, 2023, was $133,515.
Receivables from franchisees represent money owed to Dog Haus by its franchisees. This can arise from various sources, such as unpaid franchise fees, marketing contributions, or purchases from the franchisor. Monitoring the level of receivables is important for both Dog Haus and its franchisees. High receivable balances could indicate financial difficulties among franchisees, potentially leading to delayed payments or even defaults.
For a prospective Dog Haus franchisee, understanding the receivables balance provides insight into the financial health of the existing franchise system. It's also worth noting that as of December 31, 2023, one franchisee accounted for 21% of the total accounts receivable. This concentration could pose a risk to Dog Haus if that particular franchisee experiences financial difficulties. Therefore, it would be wise for a potential franchisee to inquire about the credit policies and collection practices that Dog Haus has in place.