What was the total value of Zoomin Groomin's accounts receivable as of December 31, 2024?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
at cost when purchased and is accounted for using the specific identification method of valuation. The inventory consists of vehicles and trailers held for future resale to franchises. The Company will recognize future income from the sales as ordinary other income on the date the title is transferred. Subsequent to the year ended December 31, 2023, the Company will no longer hold title to the vehicles and thus, the vehicles will not be recorded as inventory of the Company in subsequent years. As of Dec
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the company's accounts receivable as of December 31, 2024, totaled $386,516. These accounts receivable are amounts due to Zoomin Groomin based on the terms of executed franchise agreements for franchise sales, royalty fees, and other revenues. The company records these receivables at the original invoice amount, less any estimates for doubtful accounts.
The FDD states that Zoomin Groomin deemed all accounts receivable collectible as of December 31, 2024. This indicates that Zoomin Groomin did not anticipate any losses from uncollectible accounts at that time. This assessment is based on a review of outstanding amounts, suggesting that Zoomin Groomin actively monitors its accounts receivable to ensure their collectibility.
For a prospective franchisee, this information provides insight into the financial health and accounting practices of Zoomin Groomin. A significant amount of accounts receivable could indicate strong sales activity, but it also carries the risk of potential uncollectible accounts. However, the FDD indicates that Zoomin Groomin believes all of its accounts receivable are collectible, which could be a positive sign for potential franchisees.