What was the total amount of accrued liabilities for My Salon Suite in 2022?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| Total assets | $ 475,872,065 | $ 458,127,793 | Consolidated Balance Sheets (continued)
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Liabilities | ||
| and | ||
| Member's | ||
| Equity | ||
| Current liabilities Accounts payable Accrued liabilities Deferred revenue Current portion of lease liabilities Income tax payable | $ 1,155,458 12,803,617 2,949,793 5,783,768 4,855,752 | $ 994,642 7,779,892 3,619,688 3,841,036 1,817,613 |
| Total | 27,548,388 | 18,052,871 |
| current | ||
| liabilities | ||
| Deferred revenue - less current portion Other long-term liabilities Lease liabilities – less current portion Deferred tax liabilities | 9,030,378 262,500 54,252,528 17,220,366 | 9,831,490 - 40,413,908 17,037,959 |
| Total | 108,314,160 | 85,336,228 |
| liabilities | ||
| Commitments | ||
| and | ||
| Contingencies | ||
| (Note | ||
| 8) | ||
| Member's equity Common stock, $1.00 par value Authorized shares - 100,000, issued and outstanding shares - 1,000 Additional paid-in capital Retained earnings | 1,000 297,598,135 69,958,770 | 1,000 315,400,882 57,389,683 |
| Total | 367,557,905 | 372,791,565 |
| member's | ||
| equity | ||
| Total | $ 4 |
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 total accrued liabilities as of December 31, 2022, were $7,779,892. This figure is part of the broader liabilities and member's equity section of My Salon Suite's balance sheet, offering a snapshot of the company's financial obligations at that specific point in time. Accrued liabilities represent expenses that My Salon Suite has incurred but not yet paid, such as salaries, utilities, or taxes. This number provides insight into the company's short-term financial health and its ability to meet its immediate obligations.
For a prospective franchisee, understanding the accrued liabilities of My Salon Suite is crucial for assessing the financial stability of the franchisor. A high level of accrued liabilities relative to assets could indicate potential cash flow issues or financial strain, which might impact the franchisor's ability to support its franchisees. Conversely, a manageable level of accrued liabilities suggests that My Salon Suite is effectively managing its short-term obligations and maintaining a healthy financial position.
It is important to note that this figure represents a specific point in time and can fluctuate due to various factors, including seasonal variations in business activity, changes in payment terms with suppliers, and strategic decisions regarding expense management. Therefore, a prospective franchisee should review these figures in conjunction with other financial metrics and trends to gain a comprehensive understanding of My Salon Suite's financial health and stability. Examining several years' worth of data, if available, would provide a more complete picture of how these liabilities have changed over time and whether there are any patterns or trends that warrant further investigation.