What were the total liabilities 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 | $ | 1,3 |
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.
Breaking down the liabilities, accounts payable totaled $9,763, representing short-term obligations to suppliers. Deferred revenue amounted to $34,409, reflecting payments received for goods or services not yet delivered. A significant portion of the liabilities was attributed to amounts due to franchisees under the cashback program, totaling $472,253. Accrued expenses, which include expenses incurred but not yet paid, were $260,669.
For a prospective Floors To Go franchisee, understanding the franchisor's liabilities is crucial. A high level of current liabilities relative to current assets could indicate potential financial strain on the franchisor. However, in this case, the franchisor's current assets of $1,276,960 exceed the current liabilities of $777,094, suggesting a healthy short-term financial position. The franchisee should pay close attention to the 'Due to franchisees - cashback program' liability, as it reflects the franchisor's obligation to its franchisees and could impact the franchisor's cash flow.