What was the total amount of The Standardx's guarantee liabilities as of March 31, 2025?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Deferred compensation plans funded by rabbi trusts (Note 4) | $ 523 | $ 548 |
| Income taxes payable | 488 | 464 |
| Guarantee liabilities (Note 12) | 231 | 229 |
| Deferred income taxes (Note 11) | 225 | 171 |
| Contingent consideration liabilities (Note 12) | 208 | 214 |
| Self-insurance liabilities (Note 12) | 88 | 83 |
| Deferred consideration liability (Note 6) (1) | 40 | 38 |
| Other | 71 | 63 |
| Total other long-term liabilities | $ 1,874 | $ 1,810 |
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company's guarantee liabilities as of March 31, 2025, were $231 million. This figure is a component of the total other long-term liabilities, which amounted to $1,874 million on the same date.
This indicates the financial obligations The Standardx has guaranteed on behalf of other parties. These guarantees could be related to debt, performance, or other contractual obligations. The FDD also notes that the fair value of the guarantees was estimated to be $220 million as of March 31, 2025.
For a prospective franchisee, this information is relevant because it provides insight into the financial risk and obligations The Standardx has undertaken. While guarantee liabilities are a normal part of business, a high amount could indicate potential financial strain if the guaranteed parties default on their obligations. It is important to note that this figure represents the company's liabilities and not necessarily the liabilities of its franchisees.