According to Face Foundrie's 2025 Franchise Disclosure Document, the net accounts receivable balance as of December 31, 2022, was $101,020. Accounts receivable are amounts due to Face Foundrie based on executed franchise agreements for franchise sales, royalties, and other sales transactions. These receivables are recorded at the original invoice amount, less any estimate for doubtful receivables.

Face Foundrie uses the Current Expected Credit Losses (CECL) model to estimate allowances for doubtful receivables, which requires estimating expected credit losses over the life of the financial instrument. However, in 2022, Face Foundrie did not have an allowance for doubtful accounts. This means that the company believed all of its accounts receivable were fully collectible as of that date.

For a prospective franchisee, understanding the accounts receivable is important because it reflects the financial health and revenue collection efficiency of Face Foundrie. A growing accounts receivable balance could indicate increasing sales, but it could also signal potential issues with collecting payments from franchisees. The absence of an allowance for doubtful accounts in 2022 suggests that Face Foundrie had confidence in its franchisees' ability to pay their dues during that period.