What was the total amount of Lees Famous Recipe's current liabilities in the most recent fiscal year?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current Liabilities: | ||
|---|---|---|
| Accounts payable | $ 2,241,389 | $ 1,310,322 |
| Accrued payroll and compensated absences | 522,582 | 2 42,966 |
| Taxes payable | 443,821 | 1 54,191 |
| Current portion of notes payable | 799,979 | 8 15,582 |
| Current portion of operating lease liabilities | 1,487,148 | 3 24,821 |
| Current portion of deferred revenue | 215,324 | 7 7,580 |
| Current portion of contingent consideration liability | 369,369 | 3 97,462 |
| Total current liabilities | 6,079,612 | 3,322,924 |
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the total current liabilities for the most recent fiscal year is detailed in Item 23. The data shows that the total current liabilities amounted to $6,079,612. This figure represents the sum of several short-term financial obligations, including accounts payable, accrued payroll and compensated absences, taxes payable, the current portion of notes payable, the current portion of operating lease liabilities, the current portion of deferred revenue, and the current portion of contingent consideration liability.
For a prospective franchisee, understanding the current liabilities of Lees Famous Recipe is crucial as it provides insight into the company's short-term financial health and obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect the franchisor's ability to support its franchisees. Conversely, a manageable level of current liabilities suggests financial stability and the capability to meet short-term obligations.
It is also useful to compare these figures with previous years to identify trends. In this case, the total current liabilities for the previous year were $3,322,924, indicating a significant increase in the most recent fiscal year. This increase could be due to various factors, such as increased borrowing, higher accounts payable, or changes in accounting practices. A potential franchisee should investigate the reasons behind this increase to assess any potential risks or implications for the franchise system.
Overall, while the FDD provides a snapshot of Lees Famous Recipe's financial position, prospective franchisees should conduct their own due diligence, including consulting with financial advisors, to fully understand the financial health and stability of the franchise system. Understanding the franchisor's liabilities is a key component of assessing the overall risk and opportunity associated with investing in a Lees Famous Recipe franchise.