What were the other current assets for Face Foundrie in 2022?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
2023, the balance was $750,000, which the Company converted into a note receivable. The terms of the note call for quarterly payments over five years beginning March 1, 2024. The note accrues interest at a rate of 1.99% annually. As of December 31, 2024, the balance was $750,000.
(i) Other Current Assets
The Company has other current assets of $29,383 and $73,451 as of December 31, 2023 and 2022, respectively. There were not any other current assets as of December 31, 2024. These items consist of accrued royalty, advertising, and technology fee reve
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 other current assets totaled $73,451 as of December 31, 2022. These assets comprised accrued revenue from royalties, advertising, and technology fees, along with revenue from gift cards. This figure is part of Face Foundrie's overall financial reporting, which includes audited balance sheets and related statements. These financial statements offer insight into the company's financial health and operational performance.
For a prospective franchisee, understanding the composition and value of these 'other current assets' is important. These assets represent revenues that Face Foundrie has earned but not yet received in cash. The fact that these assets include accrued revenues from various fees and gift cards indicates the different revenue streams that contribute to Face Foundrie's financial performance. Monitoring these assets over time, as the FDD provides for 2023 and 2024 as well, can reveal trends in Face Foundrie's revenue recognition and collection efficiency.
The FDD also notes that Face Foundrie regularly assesses the carrying amounts of other current assets to ensure they are not overstated and are recoverable. This assessment is a standard accounting practice to prevent overvaluation of assets on the balance sheet. Any adjustments due to impairments are recognized in the period they are identified, which ensures that the financial statements accurately reflect the company's financial position.
In 2024, Face Foundrie did not have any other current assets. In 2023, Face Foundrie had other current assets of $29,383. Reviewing these figures over multiple years helps potential franchisees understand the fluctuations and nature of these assets within Face Foundrie's financial structure.