What was the amount of related party payable for Antioch Pizza Shop in 2022?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
330 | 218,330 | | Balances at December 31, 2023 | 1,000 | $ | 10 | $ | 6,810 | $ | 245,516 | $ 252,336 |
STATEMENTS OF CASH FLOWS
For the years ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Cash flows from operating activities | ||||||
| Net income | $ | 218,330 | $ | 35,383 | $ | 259,523 |
| Adjustments to reconcile net income to | ||||||
| net cash provided by operating activities: | ||||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (22,400) | - | - | |||
| Inventory | (7,650) | - | - | |||
| Deferred commissions | 8,008 | (16,973) | - | |||
| Related party payable | - | - | (44,521) | |||
| Accounts payable | (2,199) | 6,383 | (10,856) | |||
| Deferred revenue | - | 10,000 | 25,000 | |||
| Net cash provided by operating activities | 194,089 | 34,793 | 229,146 | |||
| Cash flows from financing activities | ||||||
| Stockholder dividends | (15,510) | (85,889) | (430,179) | |||
| Net cash used in financing activities | (15,510) | (85,889) | (430,179) | |||
| Net change in cash and cash equivalents | 178,579 | (51,096) | (201,033) | |||
| Cash and cash equivalents at beginning of period |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the related party payable in 2022 was ($44,521). This figure represents the net change in the amount owed to related parties, which in this case is Wix Pizza, Inc., the affiliate that has operated the original Antioch Pizza Shop since 2008.
A 'related party payable' signifies the amount Antioch Pizza Shop owes to its affiliate, Wix Pizza, Inc. The payable decreased by $44,521 during 2022. This could be due to Antioch Pizza Shop paying down existing debt to its affiliate or changes in inter-company transactions during that year.
For a prospective franchisee, this indicates financial interactions between Antioch Pizza Shop and its affiliate. While not inherently negative, it's crucial to understand the nature of these transactions. A franchisee should inquire about the details of these related-party transactions to assess if they are conducted at arm's length and on terms that are fair to the franchise system. Understanding these relationships can provide insight into the overall financial health and stability of Antioch Pizza Shop.