What were the accrued payroll expenses for Face Foundrie as of December 31, 2024?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Accrued expenses as of December 31, 2024, 2023 and 2022 consist of the following: | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Reimbursement payable | $ | - | $10,049 | $ | - | |
| Professional fees payable | 23,265 | 21,230 | 5,495 | |||
| Accrued payroll | 16,223 $39,488 | $31,279 | - $63,084 | 57,589 |
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the accrued payroll expenses as of December 31, 2024, were $16,223. This figure is part of the accrued expenses, which totaled $39,488 for the same date. It is important to note that accrued expenses also include professional fees payable, which amounted to $23,265 as of December 31, 2024.
Accrued expenses represent liabilities that Face Foundrie has incurred but not yet paid. Accrued payroll specifically refers to wages, salaries, and related payroll taxes that were earned by employees but not yet disbursed as of the end of the accounting period. This is a common accounting practice that ensures expenses are recognized in the period they were incurred, providing a more accurate financial picture.
For a prospective Face Foundrie franchisee, understanding these figures is crucial for assessing the company's financial health and stability. While the accrued payroll expenses themselves may not be a significant concern, monitoring the trend of these expenses over time can provide insights into the company's operational efficiency and cash flow management. It's also important to compare these figures with industry benchmarks to determine if Face Foundrie's financial performance is in line with similar businesses.
Reviewing the complete financial statements and understanding the context of these accrued expenses within the broader financial picture is essential for making an informed investment decision. Consulting with a financial advisor can help potential franchisees interpret these figures and assess the overall financial risk and potential of investing in a Face Foundrie franchise.