What were the accounts payable for Face Foundrie in 2024?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| 4 | 2023 | 2022 | |
|---|---|---|---|
| Deferred revenue, current | $ 819,881 | $ 447,000 | $ 131,147 |
| Deferred revenue, non-current | 1,727,727 | 1,786,704 | 1,637,657 |
| $ 2,547,608 | $ 2,233,704 | $ 1,768,804 |
(5) Accounts Payable
As of December 31, 2024 and 2023, accounts payable totaled $42,622 and $20,074, respectively, consisting of amounts owed to vendors and franchisees for goods received and services rendered in the ordinary course of business. Accounts payable primarily represent trade payables with credit terms ranging from 0-90 days. Primarily all payables are within the 60 day range as of December 31, 2024 and 2023.
Accounts payable balances are recorded at their original invoiced amounts and are recognized as liabilities on the balance sheet until paid. The Company evaluates the carrying amount of accounts payable regularly to ensure they are properly valued and cla
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the accounts payable totaled $42,622 as of December 31, 2024. This figure represents the amounts Face Foundrie Franchising LLC owed to vendors and franchisees for goods received and services rendered during the normal course of business. These payables primarily consist of trade payables with credit terms typically ranging from 0 to 90 days, with most payables falling within the 60-day range as of the end of 2024.
For a prospective Face Foundrie franchisee, understanding the accounts payable is crucial for assessing the company's short-term financial obligations. The fact that these payables are largely within a 60-day range suggests that Face Foundrie generally manages its payments to vendors and franchisees in a timely manner. This can be a positive indicator of the company's financial health and its relationships with its suppliers and franchisees.
The FDD also notes that accounts payable balances are recorded at their original invoiced amounts and are recognized as liabilities on the balance sheet until they are paid. Face Foundrie evaluates the carrying amount of accounts payable regularly to ensure they are properly valued and classified as current liabilities. Furthermore, the company reported no significant concentrations of credit risk related to accounts payable as of December 31, 2024, 2023, and 2022, and there were no material uncertainties regarding the timing or amount of future cash outflows associated with these payables.
Overall, the information provided in the FDD indicates that Face Foundrie maintains a standard approach to managing its accounts payable, which is a key aspect of its financial operations. Prospective franchisees can use this information to gain confidence in the company's financial stability and its ability to meet its short-term obligations.