What was the total value of Mr. Sandless's accounts receivable as of December 31, 2021?
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)
Based on the 2025 Franchise Disclosure Document, the financial statements for Mr. Sandless do not explicitly state the total value of accounts receivable as of December 31, 2021. However, the document does mention that franchisee accounts receivable are a potential concentration of credit risk for the company. This suggests that Mr. Sandless does have accounts receivable from its franchisees.
While the exact figure is not provided, prospective franchisees should understand that Mr. Sandless considers these receivables a potential risk. This could be due to factors such as franchisees delaying payments or being unable to pay. Understanding the nature of these risks is important for anyone considering investing in a Mr. Sandless franchise.
To gain a clearer picture, a potential franchisee should ask Mr. Sandless for detailed information on the nature and size of these accounts receivable. Specifically, they should inquire about the average collection period, the percentage of receivables that are past due, and any history of bad debt write-offs. This information will help assess the financial health of Mr. Sandless and the potential risk associated with franchisee payments.