What were the total current liabilities for My Salon Suite as of December 31, 2024?
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 |
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 total current liabilities as of December 31, 2024, were $30,908,331. This figure represents the sum of several short-term financial obligations, including accounts payable, accrued liabilities, the current portion of deferred revenue, the current portion of lease liabilities, and income tax payable. Understanding the composition and magnitude of these liabilities is crucial for prospective franchisees to assess the company's short-term financial health.
Specifically, the current liabilities include accounts payable of $749,971, accrued liabilities of $13,058,295, the current portion of deferred revenue amounting to $3,717,216, the current portion of lease liabilities at $6,754,767, and income tax payable totaling $6,628,082. These individual components provide a more detailed view of My Salon Suite's immediate financial obligations. Monitoring these figures over time can help franchisees identify trends and potential areas of concern.
For comparison, the total current liabilities as of December 31, 2023, were $27,548,388. The increase in total current liabilities from 2023 to 2024 indicates a rise in short-term obligations. Prospective franchisees should investigate the reasons behind this increase to determine if it reflects business growth, changes in payment terms, or other factors that could impact the company's financial stability. Understanding these liabilities is essential for making an informed investment decision.
It is important for potential franchisees to consult with a financial advisor to fully understand the implications of these liabilities and how they might affect the overall financial health and stability of My Salon Suite. This due diligence will aid in assessing the risks and opportunities associated with investing in a My Salon Suite franchise.