What was the amount due from affiliates to Beard Papas as of December 31, 2023?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
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Notes to Financial Statements (continued)
4. Related Party Transactions
The following is a summary of significant balances and transactions with the related par
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, as of December 31, 2023, the amount due from affiliates to Beard Papas was $5,165. This figure reflects the balance sheet item "Due from affiliates," indicating the amount of money owed to Beard Papas by its related entities. In comparison, the amount due from affiliates as of December 31, 2022, was $11,854.
This information is relevant for prospective franchisees as it provides insight into the financial interactions between Beard Papas and its affiliates. Understanding these related-party transactions can help franchisees assess the financial health and stability of the franchisor. It is important to note that transactions with affiliates are common in franchise systems, but it is crucial to evaluate whether these transactions are conducted at arm's length and are beneficial for all parties involved.
For a potential Beard Papas franchisee, it would be prudent to further investigate the nature of these affiliate transactions. Understanding the specific services or goods provided by affiliates, and the terms of these transactions, can provide a more comprehensive view of the franchisor's financial operations. Additionally, comparing these figures over multiple years can reveal trends and potential risks associated with related-party transactions.