What was the prepaid expenses amount for My Salon Suite in 2023?
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 prepaid expenses as of December 31, 2023, were $1,956,054. This figure is part of the company's current assets, which totaled $16,666,296 as of that date. In comparison, prepaid expenses as of December 31, 2022, were $2,561,724, indicating a decrease in prepaid expenses from 2022 to 2023.
Prepaid expenses represent payments made by My Salon Suite for goods or services that have not yet been fully received or utilized. These could include items like rent, insurance, or advertising. The decrease in prepaid expenses from 2022 to 2023 could be due to a variety of factors, such as changes in payment schedules, reduced spending on certain items, or a more efficient use of resources.
For a prospective franchisee, understanding the level of prepaid expenses can provide insight into the company's financial management and operational efficiency. It's important to note that prepaid expenses are a normal part of business operations, but significant fluctuations could warrant further investigation to understand the underlying causes and potential implications for the franchisee's own financial planning and management.