What was the note receivable from a shareholder for B Bops as of December 31, 2022?

According to B Bops's 2025 Franchise Disclosure Document, the note receivable from the sole shareholder was $129,116 as of December 31, 2022. The FDD also provides the note receivable amounts for other years: $125,973 as of December 31, 2021, $132,338 as of December 31, 2023, and $194,917 as of December 31, 2024. According to the disclosure, no payments are expected to be made within one year of the financial statement date.

This indicates that the shareholder owes B Bops a significant amount of money. The fact that these are 'notes receivable' means that these are formal debts, likely with defined repayment terms, though no payments are expected in the near term.

For a prospective franchisee, this related-party transaction is important to consider. It is essential to understand the nature of this debt, its terms, and how it might affect the financial stability of B Bops. While not inherently negative, such transactions require careful scrutiny to ensure they do not pose a risk to the franchise system. It would be prudent for a potential franchisee to seek clarification from B Bops regarding the details of this note receivable and its potential impact on the company's operations and financial health.