What were the net write-offs for Precision Door Service in 2022?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the years ended December 31, | 2024 | 2023 | ||
|---|---|---|---|---|
| Operating activities | ||||
| Net income | $159,370 $ | 166,470 | ||
| Adjustments to reconcile net income to net cash | ||||
| provided by operating activities: | ||||
| Depreciation and amortization | 95,532 | 97,290 | ||
| Bad debt expense | 3,714 | 2,283 | ||
| Trade notes issued | (14,803 ) | (15,050 ) | ||
| Collections of notes receivable | 17,158 | 16,293 | ||
| Changes in assets and liabilities: | ||||
| Trade accounts receivable | (2,524 ) | (464 ) | ||
| Inventories | (794 ) | 883 | ||
| Prepaid selling expenses and other assets | (3,646 ) | (11,464 ) | ||
| Accrued liabilities | (1,361 ) | 198 | ||
| Deferred revenue | 1,725 | 11,195 | ||
| Net cash provided by operating activities | 254,371 | 267,634 | ||
| Investing activities | ||||
| Purchase of equipment and other assets | (3,782 ) | (2,893 ) | ||
| Net cash used in investing activities | (3,782 ) | (2,893 ) | ||
| Financing activities |
Balance – December 31, 2022 | $ 3,090,123 | Foreign currency translation adjustment | 18,104 | Balance – December 31, 2023 | | $ 3,111,215 |
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to the 2025 FDD, Precision Door Service's balance on December 31, 2022, was $3,090,123. The document also shows a foreign currency translation adjustment of $18,104. However, the FDD does not explicitly state the net write-offs for Precision Door Service in 2022.
While the FDD provides a detailed breakdown of revenues, expenses, and cash flow activities for 2023 and 2024, it does not include a specific figure for net write-offs in 2022. The document includes a "Bad debt expense" line item in the income statement, but this refers to the expense recognized during those years, not necessarily write-offs.
A prospective franchisee should ask Precision Door Service for the specific amount of net write-offs in 2022 to gain a clearer understanding of the company's financial performance and risk management related to uncollectible debts during that period. This information would be helpful in assessing the overall financial health and stability of the franchise system.