What were the accounts payable for Beggars Pizza in 2022?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
de evaluation of events up through and including March 22, 2024, which is the date the financial statements were available to be issued.
2. Related Party Transactions
The Company has a management fee agreement with Begcom, LLC, a related party through common ownership. The agreement expires on December 31, 2028. Management fees totaled $579,820 and $666,106 for the years ended December 31, 2023 and 2022, respectiv
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the company's accounts payable include management fees due to Begcom, LLC, a related party. As of December 31, 2022, these management fees totaled $9,166 and were included in accounts payable on the balance sheet.
This indicates that Beggars Pizza had a specific liability to Begcom, LLC for management services provided. For a prospective franchisee, this highlights the importance of understanding related-party transactions and how they impact the franchisor's financial statements. It's also important to note that these fees are part of the overall accounts payable, which represents the total short-term liabilities of the company.
It is important to note that the $9,166 only reflects the management fees due to Begcom, LLC and does not represent the entirety of Beggars Pizza's accounts payable for 2022. The FDD does not provide the total accounts payable for that year. To get a complete picture, a potential franchisee should review the full financial statements in the FDD and ask Beggars Pizza for clarification on the total accounts payable and its composition.