What were the advances to related parties for Beggars Pizza in 2024?
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 document does not specifically mention any 'advances to related parties' for 2024. However, it does detail related party transactions in the form of management fees paid to Begcom, LLC, a related party through common ownership.
The FDD states that the management fee agreement with Begcom, LLC expires on December 31, 2028. The management fees totaled $579,820 for the year ended December 31, 2023, and $666,106 for the year ended December 31, 2022. Additionally, the amounts due to Begcom, LLC as of December 31, 2023, and 2022, were $10,010 and $9,166, respectively, and these are included in accounts payable on the balance sheet.
For a prospective franchisee, it's important to note these related-party transactions because they represent a cost that Beggars Pizza incurs for management services. While the FDD provides figures for management fees and amounts due to Begcom, LLC for 2022 and 2023, it does not disclose the specific figures for 2024. To gain a clearer understanding of the financial obligations and related-party transactions, a prospective franchisee should inquire about the management fees paid to Begcom, LLC for 2024 and review the agreement's terms to assess any potential impact on the franchise's financial performance.