When was the full amount of $20,608 paid to B-Bop's Inc. by B Bops?
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, B-Bop's Inc. paid salaries and payroll taxes for the Company. These transactions resulted in a payable due to B-Bop's Inc. of $20,608 for the years ended December 31, 2022 and 2021. The full amount of $20,608 was paid on March 20th, 2023.
This indicates that B Bops Franchising Corp. had an arrangement where B-Bop's Inc. acted as a common paymaster, handling salary and payroll tax obligations. This arrangement resulted in a debt of $20,608 owed by B Bops Franchising Corp. to B-Bop's Inc. for the accumulated amounts from 2021 and 2022.
For a prospective franchisee, this information provides insight into the financial management and related-party transactions of B Bops. It's important to understand the nature of these transactions and their potential impact on the company's financial stability. While the debt was cleared in 2023, it highlights the importance of scrutinizing related-party transactions and understanding how they might affect the franchisor's financial health.
Franchisees should consider this information in the context of the overall financial health of B Bops and perhaps inquire about the details of the common paymaster arrangement and whether similar arrangements are currently in place. Understanding these financial relationships can help a franchisee assess the financial risks and stability of the franchise system.