What was the total value of assets 'due from related parties' for Aw as of December 31, 2023?
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 value of assets due from related parties as of December 31, 2023, was $51,502. This figure represents the balance due to related entities, indicating that Aw provided advances to these entities.
This related party transaction is further clarified in the notes to the financial statements. These advances are non-interest-bearing loans, meaning Aw does not charge interest on these amounts. The loans are also unsecured, meaning Aw does not hold any collateral against them, and they are due on demand, meaning Aw can request repayment at any time.
For a prospective franchisee, this information is relevant because it provides insight into Aw's financial relationships with other entities. While such transactions are not inherently problematic, franchisees should understand the nature of these relationships and how they might impact Aw's financial stability and operations. It is advisable to inquire about the identity of the related parties and the purpose of these advances to assess any potential risks or conflicts of interest.