What was the total value of Mr. Sandless's accounts receivable at the end of 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)
The 2025 Franchise Disclosure Document for Mr. Sandless does not explicitly state the total value of accounts receivable as of December 31, 2021. However, the FDD does mention that franchisee accounts receivable are financial instruments that potentially expose the company to concentration of credit risk. This suggests that Mr. Sandless does have accounts receivable from its franchisees.
Because the specific value is not disclosed, a prospective franchisee should directly ask Mr. Sandless for the accounts receivable balance as of December 31, 2021. This information would be helpful in assessing the company's financial health and its ability to manage credit risk.
Understanding the accounts receivable balance, along with other financial metrics, can provide a more complete picture of Mr. Sandless's financial performance and stability. It is important for potential franchisees to gather as much information as possible before making a decision to invest in a franchise.