What was the total amount of Face Foundrie's prepaid expenses in 2024?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
f December 31, 2024, the Company had an allowance for doubtful accounts of $25,000. There was no allowance for doubtful accounts as of December 31, 2023 and 2022. As of December 31, 2024, 2023 and 2022, the accounts receivable balance was $424,770, $96,311 and $101,020, respectively.
(g) Prepaid Expenses
As of December 31, 2024 and 2023, the Company had prepaid expenses totaling $8,530 and $17,976, respectively, consisting primarily of prepaid insurance and office expenses. Prepaid
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 prepaid expenses totaled $8,530 as of December 31, 2024. These prepaid expenses primarily consisted of prepaid insurance and office expenses. Prepaid expenses are payments made in advance for future economic benefits, which Face Foundrie expects to recognize as expenses over subsequent accounting periods.
For a prospective Face Foundrie franchisee, understanding prepaid expenses is important for assessing the company's financial health and how it manages its assets. Prepaid expenses are considered current assets, reflecting resources available to the company within a year. The FDD indicates that Face Foundrie evaluates these expenses regularly to ensure they are appropriately recorded and accurately reflect the timing of economic benefits.
The decrease in prepaid expenses from $17,976 in 2023 to $8,530 in 2024 could indicate changes in Face Foundrie's operational strategies or expense management. It's worth noting that these prepaid expenses are relatively small compared to Face Foundrie's other assets and liabilities, suggesting they may not have a significant impact on the company's overall financial position. However, monitoring these trends can provide insights into the company's financial management practices.
Prospective franchisees should consider these figures in the context of Face Foundrie's overall financial statements. Reviewing the trends in prepaid expenses, along with other assets and liabilities, can help potential franchisees gain a more comprehensive understanding of the company's financial stability and operational efficiency. This information can be valuable in making an informed decision about investing in a Face Foundrie franchise.