What was the total net trade notes receivable for Precision Door Service?
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 |
| Principal payments received | |||
| Notes issued | 14,803 | 15,050 | |
| Net write-offs | (1,727 ) | (1,370 ) | |
| Other | 10 | - | |
| Gross trade notes receivable, at end of period | 21,242 | 25,314 | |
| Allowance for credit losses | (465 ) | (563 ) | |
| Net trade notes receivable, at end of period | $20,777 $ | 24,751 |
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the total net trade notes receivable at the end of 2024 was $20,777, and $24,751 at the end of 2023. These figures represent the balance of notes receivable after accounting for potential credit losses.
For a prospective Precision Door Service franchisee, understanding these figures provides insight into the company's financial health and its management of receivables. Trade notes receivable are amounts owed to the company by its customers, and the 'net' value indicates the amount Precision Door Service realistically expects to collect.
The document also details the gross trade notes receivable and the allowance for credit losses. For 2024, the gross trade notes receivable was $21,242, with an allowance for credit losses of $465. For 2023, the gross amount was $25,314, with an allowance of $563. This allowance is a reserve for potential uncollectible amounts, reflecting a conservative accounting approach. Reviewing these figures can help a franchisee assess the risk associated with the collectability of Precision Door Service's receivables.