How does Goldfish Swim School establish an allowance for doubtful accounts receivable?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
e under common control that meet certain criteria. Instead, the determination of whether these legal entities under common control are consolidated is based on whether the Company controls the legal entities based on its direct voting rights in those entities.
Principles of Consolidation
The consolidated financial statements include the accounts of Goldfish Swim School Franchising, LLC and its wholly owned subsidiary, Goldfish Swim School Franchise Marketing, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash Equivalents
The Company considers
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpt provided does not contain information on how Goldfish Swim School establishes an allowance for doubtful accounts receivable. The document includes information regarding the nature of the business, franchise agreements, fees, accounting policies, principles of consolidation, use of estimates, cash equivalents, and restricted cash.
To fully understand Goldfish Swim School's accounting practices, a prospective franchisee should seek clarification from the franchisor regarding the specific methods used to determine and manage the allowance for doubtful accounts. This will provide insight into how the company handles potential uncollectible revenue and manages financial risk.
Understanding this aspect of financial management is crucial for franchisees to assess the financial health and stability of Goldfish Swim School, as well as to anticipate potential impacts on their own financial performance.