What was the amount of Mr. Sandless's contract liability, net of current, at the end of 2022?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Muhammad Zubairy, CPA Valley Stream, NY April 2, 2024
MR. SANDLESS FRANCHISE, LLC BALANCE SHEETS
| ASSETS | ||
|---|---|---|
| YEARS ENDED DECEMBER 31 | ||
| 2023 | 2022 | |
| Current Assets | ||
| Cash | $ 50,575 | $ 8,760 |
| Accounts receivable | 49,667 | 45,783 |
| Inventory | 8,013 | 11,865 |
| Prepaid expenses | — | — |
| Due from related party | 64,122 | 82,500 |
| Total Current Assets | 172,377 | 148,908 |
| Property and Equipment-net | 64,898 | 7,290 |
| Security deposit | 2,000 | 2,000 |
| Total Assets | $ 239,275 | $ 158,198 |
| LIABILITIES AND MEMBERS' (DEFICIT) | ||
| Current Liabilities | ||
| Accounts payable and accrued expenses | $ 244 | $ 144 |
| Due to related p |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the company's contract liability, net of current, was $298,540 at the end of 2022. This figure represents the portion of contract liabilities that are not expected to be settled within the next 12 months.
For a prospective franchisee, this number indicates Mr. Sandless's longer-term financial obligations related to contracts. Contract liabilities typically arise from advance payments received for services or goods that have not yet been fully delivered or rendered. The 'net of current' portion specifically reflects liabilities extending beyond the current operating cycle.
It is important to note that this figure is based on financial statements that have not been audited by an independent certified public accountant. The FDD explicitly advises prospective franchisees to be aware that the figures have not been independently verified. Therefore, a potential franchisee should consider this when evaluating the financial stability and obligations of Mr. Sandless.