What was the balance due to related parties by Aw as of December 31, 2024?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
but not yet earned as of December 31, 2024 and 2023, were $17,500 and $25,500 respectively.
5. RELATED PARTY TRANSACTIONS
The Company from time to time provides advances to a related entity. As of December 31, 2024 and 2023 the bala
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the balance due to related parties as of December 31, 2024, was $51,502. The FDD also notes that the company from time to time provides advances to a related entity. These loans are non-interest-bearing, unsecured, and due on demand.
For a prospective franchisee, this indicates that Aw has financial relationships with other entities, and has extended loans to them. The fact that these loans are due on demand means that Aw could theoretically call them in at any time, which could impact the company's financial position.
It is important to note that the balance due to related parties remained the same from 2023 to 2024, at $51,502. This consistency might suggest a stable, ongoing relationship. However, a potential franchisee should seek clarification from Aw regarding the nature of these related-party transactions, the identity of the related parties, and the potential impact these transactions could have on the franchise system.