What is the net amount of receivables for The Standardx, after accounting for the allowance of $6,821,037?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | |
|---|---|
| CURRENT ASSETS: | |
| Cash and cash equivalents | $ 112,484 |
| Receivables, net of allowance of $6,821,037 | 8,065,116 |
| Total current assets | 8,177,600 |
| Franchise agreement assets constituting payments to customers | 144,822,971 |
| Franchise agreement intangibles, net | 5,680,345 |
| Deferred tax assets | 609,930 |
| TOTAL ASSETS | $ 159,290,846 |
| LIABILITIES AND MEMBER'S EQUITY | |
| CURRENT LIABILITIES: | |
| Accounts payable and accrued expenses | $ 95,719 |
| Current contract liabilities | 329,024 |
| Total current liabilities | 424,743 |
| Long-term contract liabilities | 10,337,886 |
| Total liabilities | 10,762,629 |
| MEMBER'S EQUITY | 148,528,217 |
| TOTAL LIABILITIES |
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the net amount of receivables, after accounting for an allowance of $6,821,037, is $8,065,116. This figure represents the amount of money that is expected to be collected from customers or other parties, after subtracting an estimated amount that may not be collectible. This net receivable amount is listed as part of the current assets.
For a prospective The Standardx franchisee, understanding the net receivables is crucial because it provides insight into the financial health and liquidity of the company. A higher net receivables figure suggests that The Standardx is effectively collecting its dues, while a lower figure might indicate potential issues with collections or customer payments.
It's important to note that the allowance for doubtful accounts ($6,821,037) reflects the company's estimate of potential uncollectible amounts. This allowance reduces the gross receivables to a more realistic net figure, which is what's reported as an asset. Franchisees should consider this information when evaluating the overall financial stability of The Standardx.