What was the balance as of the beginning of the period for Jack In The Box in 2023?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
allowance for doubtful accounts has not historically been material. The following table summarizes the activity in our allowance for doubtful accounts (in thousands):
| 2024 | 2023 | |
|---|---|---|
| Balance as of beginning of period | $ (4,146) | $ (5,975) |
| Reversal (p |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the balance as of the beginning of the period in 2023 was $(5,975) in thousands. This figure represents the allowance for doubtful accounts at the start of the accounting period. The document also provides figures for the beginning balance in 2024, the reversal or provision for expected credit losses, write-offs charged against the allowance, and the balance as of the end of the periods in 2023 and 2024.
This information is relevant to potential Jack In The Box franchisees because it provides insight into how the company manages and accounts for potential credit losses from franchisees. The allowance for doubtful accounts reflects the company's estimate of receivables that may not be collected. A higher allowance balance could indicate greater concerns about the financial health of franchisees or a more conservative accounting approach.
For a prospective franchisee, understanding these figures can help assess the financial stability of the existing franchise network and the company's approach to managing financial risks associated with franchisees. Reviewing the changes in the allowance for doubtful accounts over time, as well as the write-offs, can provide a clearer picture of the actual credit losses experienced by Jack In The Box. This information, combined with other financial metrics, can contribute to a more informed investment decision.