What was the change in Amorino's accounts receivable related party in 2023?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
ar ended December 31, 2023 the loan
NOTES TO FINANCIAL STATEMENTS--Continued
CPUSA LLC (A Wholly-Owned subsidiary of Amorino USA Corp.)
NOTE B--RELATED PARTY TRANSACTIONS--Continued
balance and accrued interest totaling $82,730 was paid off by the Affiliate on beha
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the accounts receivable from related party remained consistent at $7,140 from December 31, 2023, to December 31, 2024. In 2022, the balance receivable from an affiliate was $35,375.
This indicates that Amorino engages in transactions with related parties, which could include its parent company or affiliates. The "accounts receivable from related party" represents money owed to Amorino by these related entities. For prospective franchisees, related party transactions are important to monitor because they can impact the financial stability and transparency of the franchise.
The fact that the accounts receivable from the related party remained the same from 2023 to 2024 may indicate consistent financial interactions between Amorino and its related entities during those years. However, the significant difference in the balance from 2022 to 2023 suggests a change in these financial relationships or transactions over time.
Prospective franchisees should seek clarification from Amorino regarding the nature of these related-party transactions, the terms of repayment, and the potential impact on the franchisee's business. Understanding these relationships can help franchisees assess the financial health and stability of the Amorino franchise system.