What was the total value of Face Foundrie's accounts receivable, net, in 2024?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the company's accounts receivable, net, totaled $424,770 in 2024. This figure represents the money owed to Face Foundrie by its customers or franchisees after deducting any allowances for doubtful accounts.
For a prospective franchisee, understanding the accounts receivable is crucial as it reflects the efficiency of Face Foundrie in collecting payments. A higher accounts receivable balance might indicate potential issues with payment collection processes or customer solvency. Conversely, a lower balance suggests effective and timely payment collection.
It's also worth noting the trend in Face Foundrie's accounts receivable over the years. In 2023, the accounts receivable, net, was $96,311, and in 2022, it was $101,020. The significant increase in 2024 could be due to various factors such as increased sales, changes in credit policies, or delayed payments from franchisees. A potential franchisee should inquire about the reasons behind this increase to better assess the financial health and operational efficiency of Face Foundrie.