What were the accrued expenses for Face Foundrie in 2022?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Liabilities and Member's Deficit | |||
| Current liabilities | |||
| Accounts payable | $ 42,622 | $ 20,074 | $ - |
| Accrued expenses | 39,488 | 31,279 | 63,084 |
| Credit card payable | 19,368 | 22,075 | 9,497 |
| Gift card liability | 2,434,596 | 1,468,430 | 712,736 |
| Operating lease liability, current | 58,952 | 32,486 | 29,204 |
| Deferred revenue, current | 819,881 | 447,000 | 131,147 |
| Total current liabilities | 3,414,907 | 2,021,344 | 945,668 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the company's accrued expenses in 2022 were $63,084. This figure is part of the current liabilities reported on the balance sheet. Accrued expenses represent liabilities that Face Foundrie has incurred but not yet paid, such as wages, utilities, or taxes. These are important to track as they represent obligations that will need to be settled in the near term.
For a prospective Face Foundrie franchisee, understanding the accrued expenses of the franchisor can provide insight into the company's short-term financial health and its ability to manage its obligations. While the franchisee is not directly responsible for these expenses, the financial stability of the franchisor can impact the support and services they provide to franchisees. A franchisor with high accrued expenses relative to its assets may face cash flow challenges that could affect its ability to invest in marketing, training, or technology, which are all crucial for franchisee success.
It's also worth noting the trend in accrued expenses over the three years presented in the FDD. In Face Foundrie's case, accrued expenses decreased from $63,084 in 2022 to $31,279 in 2023, and further to $39,488 in 2024. This could indicate improved financial management or changes in the timing of payments. A potential franchisee should inquire about the reasons for these fluctuations to gain a better understanding of the franchisor's financial practices.
Reviewing the financial statements and understanding the line items such as accrued expenses is a critical part of due diligence before investing in a franchise. It allows potential franchisees to assess the financial health and stability of the franchisor and make informed decisions about their investment.