What were the total liabilities 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
| December 31 | |||
|---|---|---|---|
| ASSETS | |||
| Current | 2023 | 2022 | |
| assets | |||
| Cash | $ 812,308 | $ 1,679,740 | |
| Accounts | |||
| receivable, | |||
| less | |||
| allowance | |||
| for | |||
| credit | |||
| losses | 461,463 | 383,451 | |
| of | |||
| $27,615 | |||
| ($19,131 | |||
| in | |||
| 2022) | |||
| Prepaid | 3,189 | 3,189 | |
| expenses | |||
| Total | 1,276,960 | 2,066,380 | |
| current | |||
| assets | |||
| Goodwill | 50,000 | 50,000 | |
| Total | $ 1,326,960 | $ 2,116,380 | |
| assets | |||
| LIABILITIES | |||
| AND | |||
| MEMBER'S | |||
| EQUITY | |||
| Liabilities | |||
| Accounts | $ |
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, 2022, were $856,940. These liabilities are all classified as current, meaning they are expected to be settled within one year.
Specifically, the liabilities consist of several components. Accounts payable totaled $15,030, representing short-term obligations to suppliers and vendors. A significant portion, $563,149, was due to franchisees under the cashback program, reflecting amounts owed to franchisees based on sales or other incentives. Deferred revenue amounted to $51,761, representing payments received for services or goods not yet delivered or earned. Accrued expenses totaled $227,000, covering expenses that have been incurred but not yet paid, such as salaries, utilities, or rent.
For a prospective Floors To Go franchisee, understanding the franchisor's liabilities is crucial. A high level of current liabilities relative to assets could indicate potential financial strain on the franchisor. However, in this case, the breakdown shows that a large portion of the liabilities is related to the cashback program, which is directly tied to franchisee sales. Monitoring the trend of these liabilities over time can provide insights into the financial health and stability of Floors To Go.