What was the total amount of current liabilities for Pearce Bespoke as of December 31, 2022?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Current Liabilities: Accounts payable Related party payables Accrued payroll and payroll taxes Deferred franchise fee revenue Operating lease liability - current | $ | 80,525 692 23,621 129,693 22,822 | $ | 7,591 - 5,339 5,100 - |
| Total Current Liabilities | 257,353 | 18,030 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the total current liabilities as of December 31, 2022, were $18,030. Current liabilities include accounts payable, related party payables, accrued payroll and payroll taxes, deferred franchise fee revenue, and the current portion of operating lease liabilities.
For a prospective franchisee, understanding the franchisor's liabilities can provide insight into the company's financial obligations and short-term financial health. A lower level of current liabilities relative to current assets generally indicates a stronger ability to meet short-term obligations.
It is important to note that this figure represents a snapshot in time and can fluctuate. Reviewing the trend of current liabilities over several years, as presented in the FDD, offers a more comprehensive understanding of Pearce Bespoke's financial stability. Additionally, comparing these liabilities to those of other franchisors in the same industry can provide a benchmark for assessing Pearce Bespoke's financial position.