What was the net value of Pump It Up's accounts receivable as of December 31, 2024?

According to Pump It Up's 2025 Franchise Disclosure Document, the net accounts receivable as of December 31, 2024, was $194,642. This figure represents the amount of money owed to Pump It Up by its customers or franchisees after deducting allowances for potential credit losses. Accounts receivable primarily consists of franchise royalty fees and receivables from franchised facilities. This number is lower than the $298,737 reported on December 31, 2023, and the $534,575 reported on January 1, 2023.

Accounts receivable is a crucial asset for Pump It Up, reflecting its ability to generate revenue and manage credit effectively. A decrease in net accounts receivable could indicate various factors, such as improved collection efforts, a decline in sales, or changes in credit policies. Pump It Up records accounts receivable and contract assets at their face amounts less an allowance for credit losses. The allowance represents an estimate of expected credit losses based upon a specific review of all significant outstanding invoices.

The allowance for estimated credit losses was approximately $26,727 as of December 31, 2024, and $172,387 as of December 31, 2023. This allowance is determined based on management's evaluation of historical losses and the financial stability of its franchisees. Monitoring accounts receivable and the associated allowance for credit losses is essential for assessing the financial health and stability of Pump It Up. A prospective franchisee should consider these figures as part of their due diligence to understand the company's financial management and potential risks associated with outstanding payments from franchisees.