What was the total value of Exit's prepaid expenses in 2022?
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 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the total value of prepaid expenses in 2022 was $116,502. This figure is part of the company's assets, specifically within the current assets category, as detailed in the balance sheets. Prepaid expenses represent payments made by Exit for goods or services that have not yet been fully received or utilized, such as insurance premiums or rent paid in advance.
For a prospective Exit franchisee, understanding the level of prepaid expenses can provide insight into the company's short-term financial health and its approach to managing operational costs. Prepaid expenses are considered assets because they represent future economic benefits for Exit.
It's important to note that prepaid expenses are distinct from other assets like cash, short-term investments, and notes receivable, each of which has its own implications for Exit's financial position. Monitoring changes in prepaid expenses over time can help assess how Exit is managing its cash flow and operational efficiency.
Franchisees should consider this figure in conjunction with other financial data to gain a comprehensive understanding of Exit's financial stability and operational practices. Reviewing trends in prepaid expenses alongside revenue and operating expenses can offer a more complete picture of the company's financial management.