What was the amount of Beggars Pizza's accounts payable in 2023?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
ugh 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 as of December 31, 2023, included management fees due to Begcom, LLC, totaling $10,010. Begcom, LLC is identified as a related party due to common ownership. The management fee agreement between Beggars Pizza and Begcom, LLC is set to expire on December 31, 2028.
Accounts payable represents the short-term liabilities Beggars Pizza owes to its suppliers and other creditors. In this case, a portion of the accounts payable is specifically related to management fees owed to a related company. This related-party transaction is disclosed to provide transparency about potential conflicts of interest or preferential terms that may exist.
For a prospective franchisee, understanding the financial relationships between Beggars Pizza and its related parties is crucial. It's important to assess whether these relationships could impact the financial stability or operational practices of the franchise system. Reviewing the complete financial statements and related notes, as well as discussing these transactions with the franchisor, can provide a clearer picture of the company's financial health and potential risks.