What was the total value of Exit's current portion of notes receivable in 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Current assets | ||||||
| Cash and cash equivalents | $ - | $ - | $ 165,530 | |||
| $458,976 | respectively | 644,643 | 859,378 | 621,432 | ||
| Short-term investment | 531,970 | 189,022 | 186,041 | |||
| Income tax receivable | 220,618 | 672,410 | - | |||
| Prepaid expenses | 103,497 | 237,657 | 116,502 | |||
| Current portion - notes receivable | 1,409,859 | 1,056,201 | 1,355,483 | |||
| Due from shareholders | 278,107 | - | - | |||
| Total current assets | 3,188,694 | 3,014,668 | 2,444,988 | |||
| Other assets | ||||||
| Advances to related parties | 2,256,933 | 2,287,705 | 2,199,967 | |||
| Notes receivable (net) | 7,601,842 | 8,704,995 | 11,839,353 | |||
| Property and equipment (net) | 205,458 | 271,020 | 328,683 | |||
| Digital assets (net) | - | 943,094 | 943,094 | |||
| Regional rights | 11,049,112 | 11,049,112 | 8,679,201 | |||
| Deferred income tax asset - United States taxes | 767,000 | 428,000 | 485,000 | |||
| Total other assets | 21,880,345 | 23,683,926 | 24,475,298 | |||
| Total assets | $ 25,069,039 | $ 26,698,594 | $ 26,920,286 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the current portion of notes receivable for Exit in 2024 was $1,409,859. Notes receivable represent balances due on the sale of Canadian and U.S. regions from sub-franchisors. These notes typically bear interest between 3.00% and 10.00%, mature between 2024 and 2033, and are secured by performance contracts in the franchisor agreements.
The current portion of notes receivable represents the amount of these notes that are expected to be collected within one year. This is an important figure for prospective franchisees to consider, as it provides insight into the company's short-term financial health and its ability to collect on its outstanding debts. A higher current portion of notes receivable suggests that Exit is effectively managing its receivables and is likely to receive timely payments from its sub-franchisors.
It is also worth noting that Exit did not have any write-downs relating to these notes receivable for the years ended December 31, 2024, 2023 and 2022. This indicates that Exit considers these notes receivable to be collectible. When a region is reacquired for non-performance by the sub-franchisor, the amount of the uncollected notes receivable is added to the cost of regional rights on the balance sheet.