What amount did Belocal owe to its affiliate as of June 30, 2024?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
d June 30, 2025, 2024 and 2023, respectively.
As of June 30, 2025 and 2024, the Company had an amount of $4,217,245 and $3,998,969, respectively, due from its affiliate. Had these transactions occurred as unrelated third party transactions, the fi
Source: Item 23 — RECEIPTS (FDD pages 71–242)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, as of June 30, 2024, Belocal had $3,998,969 due from its affiliate. The FDD also notes that the affiliate, N2 Company, provides accounting, marketing, and other operating services to Belocal.
This related party transaction is important for prospective franchisees to understand because it highlights the financial relationship between Belocal and its affiliate. The FDD indicates that the affiliate provides essential services to Belocal, and these costs are included in the management fees.
It is also noted that the financial results may have varied significantly had these transactions occurred as unrelated third-party transactions. This suggests that the terms of these related-party transactions might not be the same as those that would be negotiated in an arm's-length transaction with an independent company. A potential franchisee should consider this when evaluating Belocal's financial statements and assess whether these related-party transactions impact the overall profitability and stability of the franchise system.