What was the total value of Kidokinetics' accounts receivable as of December 31, 2022?

According to Kidokinetics's 2024 Franchise Disclosure Document, the company's accounts receivable as of December 31, 2022, was $498. Accounts receivable primarily consists of amounts owed to Kidokinetics from franchisees for initial franchise fees, royalty fees, and advertising fees. These receivables are recorded at the original invoice amount, with an allowance for doubtful accounts based on a review of outstanding amounts.

Kidokinetics's management regularly assesses individual customer receivables, taking into account their financial condition, credit history, and current economic conditions. Receivables are written off when they are deemed uncollectible. Any recoveries of accounts receivable that were previously written off are recorded as income when they are received.

The FDD states that as of December 31, 2023, 2022, and 2021, Kidokinetics had no allowance for uncollectible accounts. This suggests that Kidokinetics believes that all of its accounts receivable are fully collectible. A prospective franchisee should monitor Kidokinetics's accounts receivable and allowance for uncollectible accounts to assess the credit risk of Kidokinetics's franchisees.