What was the balance due to affiliates by Bananas Smoothies Frozen Yogurt as of December 31, 2023?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
agement fees to Villa Enterprise Management Ltd. ("Villa Enterprises"), a commonly-owned affiliate of the Company. Villa Enterprises provides administrative, management and accounting services for the Company. The existence of the Company's relationship with Villa Enterprises could result in operating results significantly different from those that would have been ob
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 FDD, as of December 31, 2023, Bananas Smoothies Frozen Yogurt had a balance due to affiliates of $10,443. These balances arise from occasional receipts and disbursements made in the normal course of business on behalf of commonly-owned affiliates.
These balances are unsecured, noninterest-bearing, and have no specified repayment terms. This means that Bananas Smoothies Frozen Yogurt's affiliates are not charging interest on the outstanding balance, and there is no fixed schedule for when the company must repay the amount.
Prospective franchisees should be aware of these related-party transactions, as they can impact the financial performance of Bananas Smoothies Frozen Yogurt. While the FDD states that these transactions are part of the normal course of business, it is important to understand the nature and extent of these transactions to assess their potential impact on the franchise's financial stability. It is advisable to inquire about the specific affiliates involved and the types of transactions that contribute to these balances.