Regarding Atwell Suites' related-party transactions, what was the interest income related to receivables from affiliates for the year ended December 31, 2024?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
f $3.1 million associated with the non-permanently reinvested earnings.
On August 16, 2022, the Inflation Reduction Act ("IRA") was signed into law in the United States. The Company is not expecting any of the enacted provisions from the IRA to impact the Company's income tax provision.
13. Related-Party Transactions
Receivables from and payables to affiliated companies included in current assets and current li
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the interest income related to receivables from affiliates was $366.2 million for the year ended December 31, 2024. The FDD also notes that interest income related to receivables from affiliates was $325.7 million for the year ended December 31, 2023, and $193.8 million for the year ended December 31, 2022.
This income is presented on a net basis in the consolidated statements of net income, meaning it is shown after deducting interest expense related to payables to affiliates. For the year ended December 31, 2024, interest expense related to payables to affiliates was $78.9 million. For 2023, it was $73.3 million, and for 2022, $52.6 million.
For a prospective Atwell Suites franchisee, this indicates the scale of financial transactions occurring between the company and its related entities. While franchisees may not be directly involved in these transactions, understanding their magnitude can provide insight into the overall financial structure and health of the Atwell Suites organization. It's important to note that these are consolidated figures, reflecting the financial activities of the broader corporate group, not just the Atwell Suites franchise system itself.