What were the accounts payable to affiliates for B Bops in 2021?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
r 31, 2021.
B-Bop's, Inc. (a common paymaster) paid salaries and payroll taxes for the Company. The amount paid for salaries and payroll taxes was $0 for the year ended December 31, 2024, $0 for the year ended December 31, 2023, $0 for the year ended December 31, 2022 and $101,450 for the year ended December 31, 2021. These transactions resulted in a payable due to B-Bop's Inc. of $20,608 for the years ended December 31, 2022 and 2021. No expenses were paid by the common paymaster in 2024 and the full amount of $20,608 was paid on March 20th<
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, in 2021, B-Bop's, Inc. (a common paymaster) paid $101,450 in salaries and payroll taxes for B Bops. This resulted in a payable due to B-Bop's Inc. of $20,608 for the year ended December 31, 2021.
In practical terms, this means that B Bops had an outstanding debt of $20,608 to its affiliate, B-Bop's Inc., at the end of 2021 due to salary and payroll tax payments made on its behalf. This type of inter-company payable is not uncommon, especially when one entity handles administrative functions for related companies.
For a prospective franchisee, this information provides insight into the financial relationships between B Bops and its affiliates. While a $20,608 payable might not be significant on its own, it's important to understand the context of these transactions and how they might impact the overall financial health of the franchise system. Franchisees should inquire about the nature of these inter-company transactions and ensure they are conducted at arm's length and do not create any undue financial burden on the franchisor.