What was the amount of accounts payable to related parties for Amorino in 2024?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | December 31, 2023 | 2022 | ||
|---|---|---|---|---|
| LIABILITIES AND MEMBER'S DEFICIT | ||||
| CURRENT LIABILITIES Accounts payable Accounts payable to related partyNote B Accrued expenses Deferred revenue TOTAL CURRENT LIABILITIES | $ 4,280 75,887 10,211 34,466 124,844 | $ | 2,690 72,905 -0- 19,899 95,494 | $ -0- -0- -0- 17,376 17,376 |
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the accounts payable to related parties as of December 31, 2024, was $75,887. This liability represents amounts owed by Amorino to its affiliate. Understanding these related-party transactions is crucial for prospective franchisees as it sheds light on the financial relationships between Amorino and its affiliated entities.
Accounts payable to related parties can arise from various inter-company transactions, such as services provided, expenses paid on behalf of the company, or other financial arrangements. These transactions are disclosed to provide transparency into the company's financial structure and obligations. The FDD also indicates that at December 31, 2023, the accounts payable to the affiliate were $72,905.
For a potential Amorino franchisee, this information is relevant for assessing the company's overall financial health and stability. While related-party transactions are not inherently problematic, they require careful scrutiny to ensure they are conducted at arm's length and do not adversely affect the company's financial position. It is advisable for prospective franchisees to seek clarification from Amorino regarding the nature and terms of these related-party transactions to gain a comprehensive understanding of their implications.