What was the total value of accounts receivable for Fat Shack at the end of 2022?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
SHACK INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
| 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 Cu |
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the value of accounts receivable at the end of 2022 was $17,545. This figure is part of the company's balance sheet, reflecting the money owed to Fat Shack by its customers or franchisees for goods or services already provided but not yet paid for. Accounts receivable are considered a current asset, representing resources that are expected to be converted into cash within one year.
For a prospective Fat Shack franchisee, understanding the accounts receivable is important for assessing the financial health and stability of the company. A high or increasing accounts receivable balance could indicate potential issues with collecting payments, while a low balance might suggest efficient payment collection processes. Reviewing trends in accounts receivable over several years, as presented in the balance sheet, can provide insights into the company's financial management practices.
It's also worth noting that the balance sheet includes other current assets such as cash, notes receivable, and amounts due from franchisees and related parties. These figures, along with the accounts receivable, contribute to the total current assets, which are used to evaluate the company's short-term liquidity and ability to meet its immediate obligations. Franchisees should consider these figures in totality to gain a comprehensive understanding of Fat Shack's financial position.