What was the total Due from Parent for Bath Tune Up as of December 31, 2022?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
on sale of equipment | 2,862 | | Total other income | 86,914 | | Net earnings | $ 4,223,532 | The accompanying notes are an integral part of the financial statements.
Statement of Equity
| Member's Equity | Due from Parent | Equity | |
|---|---|---|---|
| Balance at January 1, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the total "Due from Parent" was a negative amount, ($6,119,658) as of December 31, 2022. This figure represents the net payable due from Bath Tune Up to its Parent, Home Franchise Concepts, LLC, resulting from various intercompany transactions. This amount is presented as a component of equity in the company's balance sheet.
In simpler terms, Bath Tune Up owed its parent company approximately $6.12 million at the end of 2022. This liability arose from financial transactions between the two entities. It is important to note that this "Due from Parent" is a liability from Bath Tune Up's perspective, indicating money owed to its parent company.
Prospective franchisees should understand the implications of related-party transactions and how they might affect the financial health of Bath Tune Up. While intercompany transactions are common, it's crucial to assess whether they are conducted at arm's length and do not unfairly burden the franchise system. Reviewing the complete financial statements and related notes, as well as consulting with a financial advisor, is advisable to fully understand the financial relationship between Bath Tune Up and its parent company.