What was the total amount of Face Foundrie's current liabilities as of December 31, 2022?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Restrictions on Use
The use of this report is restricted to inclusion within the Company's Franchise Disclosure Document (FDD) and is not intended to be, and should not be, used or relied upon by anyone for any other use.
St. George, Utah April 16, 2025
BALANCE SHEETS
As of December 31, 2024, 2023 and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | $ 3,480,620 | $ 1,969,123 | $ 1,611,868 |
| Accounts receivable, net | 424,770 | 96,311 | 101,020 |
| Prepaid expenses | 8,530 | 17,976 | - |
| Related party note receivable | 750,000 | 750,000 | 130,986 |
| Deferred contract costs | - | 30,000 | 34,000 |
| Other current assets | - | 29,383 | 73,451 |
| Total current assets | 4,663,920 | 2,892,793 | 1,951,325 |
| Non-current assets | |||
| Operating lease right-of-use asset | 331,322 | 366,840 | 400,209 |
| Equipment, net | 8,039 | 5,030 | 6,577 |
| Intangible assets, net | 41,404 | 53,872 | 42,340 |
| Total non-current assets | 380,765 | 425,742 | 449,126 |
| Total assets | $ 5,044,685 | $ 3,318,535 | $ 2,400,451 |
| 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 |
| Non-current liabilities | |||
| Operating lease liability, non-current | 284,843 | 343,795 | 376,281 |
| Deferred revenue, non-current | 1,72 |
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 total current liabilities as of December 31, 2022, were $945,668. Current liabilities are obligations due within one year, reflecting Face Foundrie's short-term financial obligations. These liabilities include accounts payable, accrued expenses, credit card payable, gift card liability, operating lease liability (current portion), and deferred revenue (current portion).
For a prospective Face Foundrie franchisee, understanding the composition and amount of these current liabilities is crucial. It provides insight into the company's short-term financial health and its ability to meet its immediate obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect Face Foundrie's ability to support its franchisees or invest in growth initiatives.
The specific components of current liabilities also offer valuable information. For instance, the gift card liability indicates the amount of outstanding gift cards that customers have yet to redeem, representing a future obligation for Face Foundrie. Deferred revenue reflects payments received for services or products that have not yet been delivered, another form of obligation. Monitoring these figures helps a franchisee assess the stability and reliability of Face Foundrie's financial position.
Overall, the current liabilities figure is a key indicator of Face Foundrie's financial stability and operational efficiency. Potential franchisees should analyze this number in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health and its capacity to support its franchise network.