What was the total amount of accounts receivable for Mr. Sandless as of December 31, 2023?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
es as well as continuing royalties to the Company based upon a percentage of sales. Under this arrangement, franchisees are granted the right to operate a Mr. Sandless franchise business for a specified number of years.
Concentration of Credit Risk-Financial instruments that potentially expose the Company to concentration of credit risk primarily consist of cash and cash equivalents and franchisee accounts receivable. The bal
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the financial statements include information about concentration of credit risk, noting that financial instruments that potentially expose the company to credit risk primarily consist of cash and cash equivalents and franchisee accounts receivable. The document states that the balances in the company's cash accounts do not exceed the Federal Deposit Insurance (FDIC) limit of $250,000 as of December 31, 2023.
However, the specific total amount of accounts receivable for Mr. Sandless as of December 31, 2023, is not explicitly detailed in the provided excerpts. While the document acknowledges that franchisee accounts receivable are a component of credit risk, it does not provide a concrete figure for the total value of these receivables at that time.
A prospective franchisee should request a complete copy of Mr. Sandless's financial statements, including the balance sheets, to ascertain the exact amount of accounts receivable as of December 31, 2023. Understanding the magnitude of accounts receivable can help a franchisee assess the financial health and stability of the franchisor.