As of December 31, 2023, what were the cash and cash equivalents for My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
identified during the audit.
Dallas, Texas April 26, 2024
Consolidated Balance Sheets
| 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 |
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 totaled $8,047,052 as of December 31, 2023. This indicates the amount of liquid assets readily available to My Salon Suite for meeting its immediate obligations and funding its operations.
For a prospective franchisee, understanding the franchisor's cash position can be important. A healthy cash balance suggests financial stability and the ability to support franchisees. However, it's also worth noting that this figure represents a snapshot in time and can fluctuate due to various factors, including investments, acquisitions, and operational expenses.
It's also important to note that My Salon Suite 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. Prospective franchisees may want to inquire about the company's cash management practices and its plans for utilizing its cash reserves to support the franchise system.