What was the amount of notes receivable contributed, net, for Precision Door Service in 2024?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the years ended December 31, | 2024 | 2023 | |
|---|---|---|---|
| Balance at beginning of period | $25,314 $ | 26,275 | |
| Notes receivable, contributed, net | (17,158 ) | - (16,293 ) | 1,652 |
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the notes receivable contributed, net, in 2024 was $(17,158). This figure represents the net value of notes receivable that were contributed to the company during that year. Notes receivable typically arise from Precision Door Service providing services or products to customers on credit, and this contribution could reflect adjustments or changes in the value of those receivables.
For a prospective franchisee, understanding the notes receivable is important because it reflects the financial transactions related to extending credit to customers. A negative value, as seen here, might indicate a reduction in the value of notes receivable due to write-offs, settlements, or other adjustments. This can impact the overall financial health and cash flow of Precision Door Service.
Franchisees should pay attention to how Precision Door Service manages its notes receivable, as it can affect the stability and predictability of the franchisor's financial performance. Monitoring these figures over time can provide insights into the company's credit policies, collection efficiency, and risk management practices. It is also important to compare these figures with previous years to identify any trends or significant changes that could affect the franchise system.