What was the total amount of long-term liabilities for Extreme Art Studio in 2000?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2000 Accounts Payable | 0.00 |
|---|---|
| Total Accounts Payable | $ 0.00 |
| Credit Cards | |
| Total Credit Cards | $ 0.00 |
| Other Current Liabilities | |
| 2100 Payroll Liabilities | 0.00 |
| 2408 WF Line of Credit 2314 | 0.00 |
| Total 2450 Deferred Revenue | $ 0.00 |
| Total Other Current Liabilities | $ 0.00 |
| Total Current Liabilities | $ 0.00 |
| Long-Term Liabilities | |
| 2430 Note Payable - Long Term | 15,000.00 |
| Total Long-Term Liabilities | $ 15,000.00 |
| Total Liabilities | $ 15,000. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the total long-term liabilities for the company in 2000 were $15,000. This amount is detailed in the financial statements included in the FDD. Specifically, the note payable - long term is listed as $15,000.00, which comprises the entirety of the long-term liabilities.
For a prospective franchisee, understanding the franchisor's liabilities is crucial as it provides insight into the financial stability and health of Extreme Art Studio. A high level of liabilities could indicate financial risk, while a lower amount, as seen here, might suggest a more stable financial position. However, it is important to consider this figure in conjunction with the company's assets and equity to get a complete picture of its financial standing.
It's also worth noting that the note payable represents a debt that Extreme Art Studio is obligated to repay over a period extending beyond one year. Franchisees should inquire about the terms of this note, such as the interest rate and repayment schedule, to fully understand its impact on the company's cash flow and profitability. Reviewing these liabilities in the context of the overall financial statements helps potential franchisees assess the financial risks and opportunities associated with investing in an Extreme Art Studio franchise.