What was the total value of My Salon Suite's current liabilities as of December 31, 2023?
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 | ||
| Current liabilities | ||
| Accounts payable | $ 749,971 | $ 1,155,458 |
| Accrued liabilities | 13,058,295 | 12,803,617 |
| Current portion of deferred revenue | 3,717,216 | 2,949,793 |
| Current portion of lease liabilities | 6,754,767 | 5,783,768 |
| Income tax payable | 6,628,082 | 4,855,752 |
| Total current liabilities | 30,908,331 | 27,548,388 |
| Deferred revenue - less current portion | 7,877,518 | 9,030,378 |
| Other long-term liabilities | 396,220 | 262,500 |
| Lease liabilities – less current portion | 66,154,033 | 54,252,528 |
| Deferred tax liabilities | 16,404,051 | 17,220,366 |
| Total liabilities | 121,740,153 | 108,314,160 |
| Commitments and Contingencies (Note 8) | ||
| Member's equity | ||
| Common stock, $1.00 par value | ||
| Authorized shares – 100,000 issu |
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 company's total current liabilities as of December 31, 2023, were $27,548,388. Current liabilities represent obligations due within one year, reflecting the company's short-term financial obligations.
This figure is a key indicator of My Salon Suite's short-term financial health. It includes items such as accounts payable, accrued liabilities, the current portion of deferred revenue, the current portion of lease liabilities, and income tax payable. A prospective franchisee should consider this amount in relation to the company's current assets to assess its ability to meet these short-term obligations.
Understanding the composition and magnitude of these liabilities is crucial for potential franchisees. It provides insight into the financial stability and operational efficiency of My Salon Suite. Monitoring these figures over time can reveal trends in the company's financial management and its capacity to handle its immediate debts.