What was the change in accounts receivable, net for Potbelly Sandwich Works in 2023?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
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| December 29, 2024 | December 31, 2023 | ||||
|---|---|---|---|---|---|
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ 11,663 | $ | 33,788 | ||
| Accounts receivable, net of allowances of $22 and $26 as of December 29, 2024 and December 31, | 9,765 | 7,960 | |||
| 2023, respectively |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the net accounts receivable decreased from December 31, 2023, to December 29, 2024. Specifically, the accounts receivable, net of allowances, was $7,960 as of December 31, 2023, with allowances of $26. By December 29, 2024, the accounts receivable, net of allowances, increased to $9,765, with allowances of $22.
This change indicates that Potbelly Sandwich Works collected more of its outstanding receivables during 2024 compared to the previous year. For a potential franchisee, this could reflect positively on the brand's financial health and efficiency in managing its accounts. It suggests that Potbelly Sandwich Works is effectively collecting payments due to them, which can contribute to a more stable cash flow.
However, it's important to note that these figures are presented in thousands of dollars. The allowance for doubtful accounts represents the company's estimate of uncollectible receivables. The change in these allowances from $26 in 2023 to $22 in 2024 suggests a slight improvement in the perceived credit quality of Potbelly Sandwich Works' receivables. Prospective franchisees should consider these trends as part of their overall assessment of the company's financial performance and stability.