What was the total value of Management Recruiters' assets as of December 31, 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
We have served as the Company's auditor since 2017.
/s/ Plante & Moran, PLLC
Denver, Colorado March 21, 2023
HireQuest, Inc. Consolidated Balance Sheets
| (in thousands except par value data) | December 31, 2022 | December 31, 2021 | |
|---|---|---|---|
| ASSETS | |||
| Current assets | |||
| Cash | $ | 3,049 | $ 1,256 |
| Accounts receivable, net of allowance for doubtful accounts | 45,728 | 38,239 | |
| Notes receivable | 817 | 1,481 | |
| Prepaid expenses, deposits, and other assets | 1,833 | 659 | |
| Prepaid workers' compensation | 503 | 369 | |
| Total current assets | 51,930 | 42,004 | |
| Property and equipment, net | 4,353 | 4,454 | |
| Workers' compensation claim payment deposit | 1,231 | 948 | |
| Franchise agreements, net | 23,144 | 18,848 | |
| Other intangible assets, net | 10,690 | 6,228 | |
| Goodwill | 5,870 | - | |
| Other assets | 325 | 334 | |
| Notes receivable, net of current portion and reserve | 2,675 | 2,686 | |
| Intang |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the company's total assets as of December 31, 2022, amounted to $103,283,000. This figure represents the sum of all current and non-current assets listed on the balance sheet. These assets include cash, accounts receivable, notes receivable, prepaid expenses, property and equipment, franchise agreements, intangible assets, goodwill, and other assets.
For a prospective franchisee, understanding the asset value of Management Recruiters provides insight into the financial health and stability of the company. A higher asset value can indicate a stronger financial foundation, which can be reassuring for franchisees who are investing in the brand. It is important to note that while total assets provide a snapshot of the company's resources, they do not necessarily reflect profitability or cash flow.
In addition to the total asset value, the breakdown of assets into different categories offers further insights. For example, a significant portion of Management Recruiters' assets is tied up in franchise agreements ($23,144,000) and other intangible assets ($10,690,000), reflecting the importance of brand recognition and franchisee relationships to the company's value. Monitoring these specific asset categories can help franchisees understand where Management Recruiters is investing its resources and how the company is building long-term value.
Comparing the asset values from 2022 to 2021 can also reveal trends in Management Recruiters' financial performance. The total assets increased from $77,352,000 in 2021 to $103,283,000 in 2022, indicating growth in the company's overall financial position. A prospective franchisee should investigate the reasons behind this growth and assess whether it is sustainable and beneficial for the franchise system.