What were the total liabilities for Fast Fix Jewelry And Watch Repairs in 2023?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
tion expense is estimated to be approximately $617,300 during each of the years 2024 through 2027 and $128,500 in 2028.
Operating lease right-of-use assets and lease liabilities:
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which changed the criteria for recognizing leasing transactions. Under the ASU, a lessee will be required to recognize a lease liability and right-of-use lease asset for all leases with a lease term greater than 12 months, including operating leases, in the consolidated balances sheets. Subsequent measurement, including presentation of expenses and cash flows, will depend on the classification of the lease as either a financing or operating lease. In addition, expanded disclosures will be required. Topic 842 was effective for private companies for balance sheet for years beginning after December 15, 2021. Accordingly, the Company adopted the ASU effective January 1, 2022 and recognized approximately $13,401,000 of operating right-of-use assets and lease liabilities on the consolidated balance sheet.
Jewelry Repair Enterprises, Inc. Notes to Consolidated Financial Statements
For the years ended December 31, 2023 and 2022
Note 1. Summary of Significant Accounting Policies and Activities, Continued
Operating lease right-of-use assets and lease liabilities, continued:
The Company elected the package of practical expedients which allow the Company not to reassess:
- · Whether expired or existing contracts contain leases under the new definition of a lease;
- Lease classification for expired or existing leases; and
- Whether previously capitalized initial direct costs would qualify for capitalization under ASC 842.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the financial statements of Fast Fix Jewelry And Watch Repairs do not explicitly state the total liabilities as a single figure for the year 2023. However, the document provides details on specific liabilities, such as operating lease liabilities and long-term debt.
Specifically, the FDD mentions that the company adopted ASU Topic 842 effective January 1, 2022, and recognized approximately $13,401,000 of operating right-of-use assets and lease liabilities on the consolidated balance sheet. Additionally, the company had a senior term loan of $5,300,000 with specific interest rates and monthly payment schedules. There were also unpaid management fees of approximately $449,000 included in accrued expenses as of December 31, 2023.
A prospective Fast Fix Jewelry And Watch Repairs franchisee should note that while the total liabilities are not directly stated, the FDD provides insight into the types and amounts of liabilities the company holds. Understanding the nature of these liabilities, such as lease obligations and long-term debt, is crucial for assessing the financial health and stability of the franchisor.
To gain a comprehensive understanding of the company's total liabilities for 2023, a potential franchisee should request the complete audited financial statements from Fast Fix Jewelry And Watch Repairs. This will provide a detailed breakdown of all liabilities, which is essential for making an informed investment decision.