What was the rebates payable balance for Fat Shack on December 31, 2024?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | YEARS ENDED DECEMBER 31 | ||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Current Assets | |||||
| cash | $ 38,995 | $ | 189,456 | $ | 321,800 |
| Accounts receivable | 1,943 | 1,943 | 17,S45 | ||
| Due from Franchisee | 5,410 | 18,585 | 14,099 | ||
| Deferred Tax Asset | 267 | 2,355 | 18,102 | ||
| Notes receivable | 701,287 | 479,960 | 528,900 | ||
| Rebates Receivable | 25,956 | 38,322 | 45,039 | ||
| Due from related parties | 412,871 | 673,871 | 603,870 | ||
| Other | 10,610 | 10,094 | 13,793 | ||
| Total Current Assets | 1,197,339 | 1,414,586 | 1,563,148 | ||
| Long Term Assets | |||||
| Fixed assets, net | 2,327 | 9,203 | 16,079 | ||
| Security deposits | 1,545 | 1,545 | 1,545 | ||
| Total Long Term Assets | 3,872 | 10,748 | 17,624 | ||
| Total Assets | $ 1,201,211 | $ | 1,425,334 | $ | 1,580,772 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current Liabilities | |||||
| Accounts payable and accrued expenses | $ 32,372 | $ | 44,354 | $ | 56,681 |
| Income taxes payable | 2,674 | ||||
| Gift Card payable | 7,905 | 8,293 | 7,581 | ||
| Rebates payable | 19,912 | ||||
| Loan Payable | 118,326 | 194,983 | 185,531 | ||
| Deferred revenue | 15,000 | 15,000 | |||
| Total Current Liabilities | 193,515 | 250,304 | 264,793 | ||
| Loan Payable - net of current | 118,129 | 312,793 | |||
| Total |
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the rebates payable balance on December 31, 2024, was $19,912. This figure represents the amount Fat Shack owed to customers or vendors in rebates at the close of the fiscal year. This liability reflects obligations the company has to provide future discounts or refunds based on prior sales or agreements.
For a prospective franchisee, understanding the rebates payable is important for assessing the company's financial health and potential obligations. It provides insight into the company's promotional strategies and how they impact the financial statements. A significant increase in rebates payable could indicate more aggressive promotional activities or changes in vendor agreements.
Reviewing the trend of rebates payable over the past few years, as presented in the financial statements, can offer a more comprehensive understanding. Comparing this figure with industry benchmarks can also help a franchisee evaluate whether Fat Shack's rebates payable are within a reasonable range. This information is crucial for making informed decisions about the financial stability and practices of the franchise.