What were the total current liabilities for Expense Reduction Analysts in 2023?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
s | | 5,148 | | 5,148 | | Deferred Tax Asset | | 29,195 | | 155,408 | | Intangible Assets, Net | | 5,640,216 | | 5,640,216 | | Total Other Assets | | 8,357,318 | | 7,837,724 | | Total Assets | S | 11,921,252 | s | 10,518,455 |
| 2023 | 9 | (restated) 2022 | ||
|---|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | 9 | |||
| CURRENT LIABILITIES | ||||
| Accounts Payable | $ | 408,147 | $ | 344,211 |
| Current Operating Lease Liability | 52,913 | 60,680 | ||
| Note Payable, Current Portion | 145,650 | 428,250 | ||
| Accrued Expenses | 257,859 | 115,928 | ||
| Training Fees Payable | 108 |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the company's total current liabilities for 2023 were $2,656,062. This figure represents the sum of several short-term financial obligations, including accounts payable, current operating lease liability, the current portion of notes payable, accrued expenses, training fees payable, amounts due to related parties and franchisees, deferred revenue, and income tax payable.
Understanding the composition and size of these liabilities is crucial for prospective franchisees. Current liabilities are obligations due within one year, so a substantial amount suggests Expense Reduction Analysts has significant short-term financial commitments. For instance, 'Due to Related Parties' at $1,090,094 indicates a notable financial relationship with affiliated entities, which could influence the company's financial strategy and stability. Similarly, deferred revenue of $537,236 means Expense Reduction Analysts has already received payment for services or products that have not yet been delivered or earned.
Comparing the 2023 figure of $2,656,062 to the restated 2022 figure of $2,166,345 reveals an increase in current liabilities. This increase could be due to various factors, such as increased operational activity, changes in payment terms with suppliers, or shifts in revenue recognition policies. A potential franchisee should investigate the reasons behind this increase to assess whether it reflects positive growth or potential financial strain. Furthermore, it would be prudent to compare these liabilities against Expense Reduction Analysts' current assets to evaluate the company's short-term liquidity and ability to meet its immediate obligations.
Overall, while the provided financial statement offers a snapshot of Expense Reduction Analysts' liabilities, prospective franchisees should conduct thorough due diligence. This includes scrutinizing the specific nature of each liability, understanding the company's historical financial performance, and assessing its future financial projections. Consulting with a financial advisor is recommended to fully comprehend the financial implications and risks associated with investing in an Expense Reduction Analysts franchise.