What was the amount of principal payments received by Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| as of December 31, 2023 and allowance for | | | | doubtful accounts of $379 as of December 31, 2022 | | | | Total trade notes receivable, net | $ 24,751 | $ 25,730 |
Notes to Combined Financial Statements ($000's)
An analysis of the changes in trade notes receivable is as follows:
| For the years ended December 31, | 2023 | 2022 | |------------------------------------------------|--------------------|----------| | | | | | Balance at beginning of period | $ 26,275 $ | 28,389 | | Notes receivable, contributed, net | 1,652 | - | | Principal payments received | (16,293) | (13,699) | | Notes issued | 15,050 | 12,808 | | Net write-offs | (1,370) | (1,223) | | Gross trade notes receivable, at end of period | 25,314 | 26,275 | | Allowance for credit losses | (563) | - | | Allowance for doubtful accounts | - | (545) | | Net trade notes receivable, at end of period | $ 24,751 $ | 25,730 | An analysis of the changes in the trade notes receivable allowance is as follows:
| For the years ended December 31, | 2023 | 2022 |
|---|---|---|
| Allowance, beginning of period | $ 545 | $ 447 |
| Provisions for bad debt |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Precision Door Service reported receiving two different amounts for principal payments in 2023. One table indicates principal payments received of $(16,293), while another table shows $(16,605). These figures reflect the cash inflow from borrowers paying down the principal on their notes. These payments contribute to the overall financial health of Precision Door Service by reducing outstanding debt and increasing available capital.
The tables also provide context by showing other financial activities related to notes receivable. For example, the tables include figures for notes receivable at the beginning of the period, notes receivable contributed, notes issued, and net write-offs. This gives a more complete picture of how Precision Door Service manages its notes receivable and the factors that influence the net amount.
Prospective franchisees should be aware of these figures as they indicate the financial transactions related to Precision Door Service's lending activities. Understanding the scale of principal payments received, as well as the issuance of new notes and any write-offs, can help a franchisee assess the financial risk and stability associated with investing in a Precision Door Service franchise. It is important to note the discrepancy in the principal payments received, and a prospective franchisee may want to inquire about this difference.