What were the total accounts receivable for Kidokinetics as of December 31, 2023?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ccounts Receivable
Accounts receivable primarily consist of amounts from franchisees for initial franchise fees, royalty fees, and advertising fees. These receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of outstanding amounts. Management regularly evaluates individual customer receivables considering their financial condition, credit history and current economic conditions. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded as income when received.
As of December 31, 2023, 2022, and 2021, the Company had receivables of $446,951, $498, and $0, respectively. As of December 31, 2023, 2022, and 2021, the Company had no allowance for unco
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the company's accounts receivable as of December 31, 2023, totaled $446,951. The FDD also provides figures for the prior two years, with accounts receivable of $498 as of December 31, 2022, and $0 as of December 31, 2021. Kidokinetics had no allowance for uncollectible accounts for any of these years.
Accounts receivable primarily consist of amounts owed to Kidokinetics from franchisees for initial franchise fees, royalty fees, and advertising fees. These receivables are carried at the original invoice amount, less any estimates for doubtful accounts. Kidokinetics's management regularly evaluates customer receivables, considering their financial condition, credit history, and current economic conditions to determine collectibility.
The significant increase in accounts receivable from $498 in 2022 to $446,951 in 2023 could indicate a substantial increase in sales or a change in payment terms offered to franchisees. A prospective franchisee should inquire about the reasons for this large increase and how Kidokinetics manages its accounts receivable to ensure timely collection. Understanding the creditworthiness of franchisees and the potential for uncollectible accounts is crucial for assessing the financial health of Kidokinetics.