What are the potential risks associated with the 'Account general trabilities' for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
899 | $ 255 | $ 87,652 | $ (9,676) | $ 78,231 |
RED LION HOTELS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
| Tolking from printing activities: Net income (loss) ( 20, 10) $ 1, 107 $ ( 3, 10) Adjustments to reconcile net loss to cash provided by (used in) operating activities: $ 1, 100 $ 3, 30 Propreciation and amoritation 1,514 3, 60 3, 70 Amoritation of key money and contract costs 1,514 3, 60 7 Amoritation of contract liabilities 1,912 1,912 1,912 Peberferd income taxes 1,912 1,912 1,912 Other for (expense), net 1,912 1,912 1,912 Designion sale of hotel 1,913 4,912 1,912 Account general trabilities 1,913 4,912 1,912 Accounting term assets and liabilities 1,914 4,912 1,912 Accounting term assets and propriate passes and other current assets 1,914 4,912 4,912 Accounting term assets and liabilities 3,134 4,912 4,912 Account propriate principal tradities 1,243 4,52 4,52 Account propriate principal tradities 3,134 4,52 | | Decembe | | | ember 31, | r 31, | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the term 'Account general trabilities' appears within a table summarizing cash flows from operating activities. It seems to be related to adjustments made to reconcile net income (loss) to cash flow. However, due to a likely typographical error ('trabilities' instead of 'receivables' or 'payables'), the exact nature of this account and its potential impact on a Sonesta Simply Suites franchisee's financial performance is unclear.
The table provides figures for this line item across three years: 2022, 2023 (restated), and 2024. The values are 1,912 for 2022, 4,912 for 2023, and 1,913 for 2024. These numbers likely represent adjustments (either positive or negative) to net income to arrive at the cash flow from operations. Without knowing exactly what 'Account general trabilities' encompasses, it's difficult to assess whether these adjustments are favorable or unfavorable for a franchisee.
Prospective Sonesta Simply Suites franchisees should seek clarification from the franchisor regarding the specific items included in 'Account general trabilities'. Understanding the composition of this account and the reasons for its fluctuations over the past three years is crucial for accurately projecting future cash flows and assessing the overall financial health of the franchise. It would be prudent to consult with a financial advisor to fully understand the implications of this item.