What was the amount of accrued liabilities for My Salon Suite as of December 31, 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
of use assets - net | 71,627,959 | 60,777,646 | | Other intangibles - net | 133,436,739 | 81,990,839 | | Goodwill - net | 321,410,147 | 300,287,335 | | Notes receivable, less current portion - net | 146,648 | 90,091 | | Other assets | 3,235,717 | 3,098,552 | | Total | $ 564,392,813 | $ 475,872,065 | | assets | | | Consolidated Balance Sheets (continued)
| As of December 31, | 2024 | 2023 |
|---|---|---|
| Liabilities and Member's Equity | ||
| Current liabilities | ||
| Accounts payable | $ 749,971 | $ 1,155,458 |
| Accrued liabilities | 13,058,295 | 12,803,617 |
| Current portion of deferred revenue | 3,717,216 | 2,949,793 |
| Current portion of lease liabilities | 6,754,767 | 5,783,768 |
| Income tax payable | 6,628,082 | 4,855,752 |
| Total current liabilities | 30,908,331 | 27,548,388 |
| Deferred revenue - less current portion | 7,877,518 | 9,030,378 |
| Other long-term liabilities | 396,220 | 262,500 |
| Lease liabilities – less current portion | 66,154,033 | 54,252,528 |
| Deferred tax liabilities | 16,404,051 | 17,220,366 |
| Total liabilities | 121,740,153 | 108,314,160 |
| Commitments and Contingencies (Note 8) | ||
| Member's equity | ||
| Common stock, $1.00 par value | ||
| Authorized shares – 100,000 issu |
Source: Item 17 — (r) of the FDD and Section 13 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law. (FDD pages 230–274)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the accrued liabilities as of December 31, 2023, were $12,803,617. This figure represents the company's short-term financial obligations that have been incurred but not yet paid. Accrued liabilities are a standard part of a company's balance sheet, reflecting expenses like salaries, rent, or utilities that are owed but haven't been disbursed.
For a prospective My Salon Suite franchisee, understanding the franchisor's accrued liabilities can provide insights into the company's financial management and short-term obligations. A significant increase in accrued liabilities from one year to the next could indicate potential cash flow issues or changes in payment practices. However, without additional context, it's difficult to determine whether this amount is high, low, or normal for a franchise system of My Salon Suite's size.
It's important to note that accrued liabilities are just one component of the overall financial health of My Salon Suite. A prospective franchisee should review the entire balance sheet and income statement, as well as other financial disclosures in the FDD, to gain a comprehensive understanding of the franchisor's financial condition. Consulting with a financial advisor or accountant is recommended to properly interpret these financial statements and assess the financial stability of My Salon Suite.