What was the total current assets for Floors To Go as of December 31, 2022?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
dgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Balance Sheets
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Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the company's total current assets as of December 31, 2022, were $2,066,380. This figure represents the sum of Floors To Go's cash, accounts receivable (less allowance for credit losses), and prepaid expenses.
For a prospective franchisee, understanding the franchisor's asset position is crucial. A strong current asset base suggests that Floors To Go has sufficient liquid resources to meet its short-term obligations and invest in growth opportunities. This can be an indicator of financial stability and the franchisor's ability to support its franchisees.
However, it's important to consider the composition of these assets. For instance, a high proportion of accounts receivable might indicate potential issues with collecting payments from franchisees or customers. Similarly, a large cash balance could suggest that the company is not effectively reinvesting its earnings. Therefore, a prospective franchisee should further investigate the nature and quality of these current assets to gain a more comprehensive understanding of Floors To Go's financial health.
Comparing the 2022 figure of $2,066,380 to the 2023 total current assets of $1,276,960 reveals a significant decrease. This change could be due to various factors, such as increased operating expenses, member distributions, or changes in accounting practices. A prospective franchisee should inquire about the reasons for this decrease to assess any potential risks or opportunities associated with the franchise.