What were the cash and cash equivalents at the beginning of the year for My Salon Suite in 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 8,047,052 | $ 11,866,419 |
| Accounts receivable - net | 5,374,191 | 5,062,196 |
| Current portion of notes receivable - net | 66,427 | 91,504 |
| Amounts due from affiliates | 486,028 | - |
| Prepaid expenses | 1,956,054 | 2,561,724 |
| Other current assets | 736,544 | 640,893 |
| T | 44.444.204 | 20 222 727 |
| Total current assets | 16,666,296 | 20,222,736 |
| Fixed assets - net | 12,961,306 | 9,996,833 |
| Right of use assets - net | 60,777,646 | 44,760,873 |
| Other intangibles - net | 81,990,839 | 83,841,171 |
| Goodwill - net | 300,287,335 | 296,897,247 |
| Notes receivable, less current portion - net | 90,091 | 111,093 |
| Other assets | 3,098,552 | 2,297,840 |
| Total assets | $ 475,872,065 | $ 458,127,793 |
The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. The Company maintains cash in financial institutions, which at times may exceed federally insured limits. The Company believes it is not exposed to any significant credit risk on such accounts. As of December 31, 2023 and 2022, cash and cash equivalents include $244,637 and $240,814, respectively, held in foreign bank accounts.
The Company maintains some of its cash in U.S. transaction accounts which are insured by the Federal Deposit Insurance Corporation up to a maximum of $250,000 per depositor. As of December 31, 2023, the Company's uninsured deposits in its deposit accounts with a U.S. bank totaled approximately $7,612,962. The Company does not believe the unsecured funds are at risk.
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the company's cash and cash equivalents at the beginning of 2023 were $11,866,419. This indicates the amount of liquid assets My Salon Suite had readily available at the start of that year. Cash and cash equivalents are defined by My Salon Suite as highly liquid investments with maturities of three months or less. These funds are used for short-term obligations.
My Salon Suite maintains cash in financial institutions, which at times may exceed federally insured limits. As of December 31, 2023, the company's uninsured deposits in its deposit accounts with a U.S. bank totaled approximately $7,612,962. However, My Salon Suite believes these unsecured funds are not at risk. They also held $244,637 and $240,814 in foreign bank accounts as of December 31, 2023 and 2022, respectively.
For a prospective franchisee, understanding the franchisor's cash position can be important. A strong cash balance suggests financial stability and the ability to support franchisees. However, it is also important to consider how My Salon Suite manages its cash and the level of uninsured deposits it holds, as this could indicate a higher level of risk, though My Salon Suite states they do not believe the unsecured funds are at risk.