What was the note receivable from shareholder for B Bops in 2024?

According to B Bops's 2025 Franchise Disclosure Document, the note receivable from the sole shareholder was $194,917 as of December 31, 2024. This indicates the amount of money owed to B Bops Franchising Corp. by its shareholder at the end of that year. The FDD also provides figures for previous years, showing the note receivable was $132,338 on December 31, 2023, $129,116 on December 31, 2022, and $125,973 on December 31, 2021.

This type of related-party transaction is not uncommon, but it's important for prospective franchisees to understand the implications. The note receivable represents an asset on B Bops's balance sheet, reflecting the amount due from the shareholder. The disclosure also states that no payments are expected to be made within one year of the financial statement date. This suggests that the repayment terms are longer-term.

Additionally, the FDD notes that B Bops earned interest income related to this receivable. The interest income was $4,758 for the year ended December 31, 2024. This detail provides further insight into the nature of the transaction, indicating that the shareholder is paying interest on the outstanding balance. A prospective franchisee should consider the size and terms of this note receivable when evaluating the overall financial health of B Bops.

It is important to note that such related-party transactions can sometimes raise concerns about potential conflicts of interest. However, the inclusion of this information in the FDD provides transparency and allows potential franchisees to assess the situation for themselves. A potential franchisee might want to inquire about the purpose of the loan, the repayment schedule, and the collateral, if any, securing the note.