What was the total liabilities amount for Floors To Go as of December 31, 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
nditions 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
| December 31 | |||||
|---|---|---|---|---|---|
| ASSETS | 2024 | 2023 | |||
| Current assets | |||||
| Cash | $ | 973,148 | $ | 812,308 | |
| Accounts receivable, less allowance for credit | |||||
| losses of approximately $33,500 ($27,500 in 2023) | 471,369 | 461,463 | |||
| Prepaid expenses | 2,475 | 3,189 | |||
| Total current assets | 1,446,992 | 1,276,960 | |||
| Goodwill | 50,000 | 50,000 | |||
| Total assets | $ | 1,496,992 | $ | 1,326,960 | |
| LIABILITIES AND MEMBER'S EQUITY | |||||
| Liabilities | |||||
| Accounts payable | $ | 800 | $ | 9,763 | |
| Deferred revenue | 28,516 | 34,409 | |||
| Due to franchisees - cashback program | 483,563 | 472,253 | |||
| Accrued expenses | 284,241 | 260,669 | |||
| Total liabilities (all cu |
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 liabilities as of December 31, 2023, were $777,094. These liabilities are all classified as current, meaning they are expected to be settled within one year.
This figure is important for prospective franchisees as it provides insight into the financial obligations of Floors To Go. A high level of liabilities could indicate financial strain, while a lower figure might suggest better financial health. Reviewing the balance sheet helps potential franchisees assess the company's ability to meet its short-term obligations.
The liabilities consist of several components: accounts payable ($9,763), amounts due to franchisees under the cashback program ($472,253), deferred revenue ($34,409), and accrued expenses ($260,669). Understanding the nature of these liabilities can give a franchisee a clearer picture of where Floors To Go's financial obligations lie. For example, a significant portion is related to the cashback program, which could be an important factor in franchisee profitability and customer satisfaction.
It is also useful to compare the 2023 liabilities to those of 2024 to identify any significant changes or trends. In 2024, the total liabilities were $797,120, slightly higher than in 2023. Monitoring these figures over time can provide a more comprehensive understanding of Floors To Go's financial stability and risk profile.