As of February 28, 2025, what is the A/R plus fees accrual amount for Mr. Sandless?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
PARED WITHOUT AN AUDIT. PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT HAS AUDITED THESE FIGURES OR EXPRESSED AN OPINION WITH REGARD TO THE CONTENT OR FORM.**
7:52 PM Mr. Sandless Franchise LLC 04/15/25 Balance Sheet
Accrual Basis As of February 28, 2025
| Feb 28, 25 | |
|---|---|
| ASSETS | |
| Current Assets | |
| Checking/Savings | |
| 1001AA TD Bank Checking | 14,975.35 |
| 1A Savings Account | 5,161.09 |
| 1004 · 1E Administration Fee | 1,300.35 |
| 4020 · 2 PayPal Online Sales | 71.94 |
| Total Checking/Savings | 21,508.73 |
| Accounts Receivable | |
| 1301 · Accounts Receivable | |
| Accounts Receivable NSF | 622.75 |
| 1302 · Allowance for Doubtful Accounts | -21,183.00 |
| 1301 · Accounts Receivable - Other | 122,631.39 |
| Total 1301 · Accounts Receivable | 102,071.14 |
| Total Accounts Receivable | 102,071.14 |
| Other Current Assets | |
| 1303 · 7FRANCHISE RECEIVABLE | 19,800.00 |
| 1304 · A/R plus fees accrual | 47,906.00 |
| 1501 · Inventory Asset | 11,865.31 |
| 1700 · Undeposited Funds | 1,132.08 |
| Total Other Current Assets | 80,703.39 |
| Total Current Assets | 204,283.26 |
| Fixed Assets | |
| 2010 Buick Lacrosse | 9,925.14 |
| Buick Verano | 16,808.09 |
| Electronic White Board | 1,908.20 |
| Massage Chair | 3,048.00 |
| 1801 · A - Equipment | 15,527.31 |
| 1802 · c - Computer equipment | |
| ROG Laptop | 1,825.29 |
| 1802 · c - Computer equipment - Other | 5,911.28 |
| Total 1802 · c - Computer equipment | 7,736.57 |
| 1803 · Office equipment | 7,836.84 |
| 1803 A · Laptop Computer | 789.52 |
| 1804 · B-New Van | -7,723.25 |
| 1822 · Building Improvements | -0.06 |
| 1824 · Dodge Ram | 105,173.50 |
| 1851 · z - Accumulated depreciation | -95,342.33 |
| Total Fixed Assets | 65,687.53 |
| Other Assets | |
| 1710 · Security deposit | 2,000.00 |
| 1900 · Due from member | 20.00 |
| 1950 · Insurance Recovery Proceeds | 0.25 |
| Total Other Assets | 2,020.25 |
| TOTAL ASSETS | 271,991.04 |
| LIABILITIES & EQUITY | |
| Liabilities | |
| Current Liabilities | |
| Accounts Payable | 851.57 |
| 2100 · Accounts Payable | |
| Total Accounts Payable | 851.57 |
**7:52 PM Mr.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the A/R plus fees accrual as of February 28, 2025, was $47,906. This figure is listed under the 'Other Current Assets' section of the balance sheet. This accrual represents revenues that Mr. Sandless has earned but not yet received in cash.
For a prospective franchisee, understanding the A/R plus fees accrual is important because it reflects the financial health and accounting practices of Mr. Sandless. Accruals can provide a more accurate picture of a company's financial performance than simply looking at cash flow. This is because accrual accounting recognizes revenue when it is earned, not necessarily when cash changes hands.
Franchisees should pay close attention to how Mr. Sandless manages its accounts receivable and fees. A high accrual balance could indicate potential issues with collecting payments from franchisees or other customers. It is also important to understand the terms and conditions associated with these fees, including when they are due and how they are calculated. Reviewing the complete balance sheet and related financial statements will give potential franchisees a better understanding of the overall financial condition of Mr. Sandless.