What is the relationship between 'Due from affiliate' and 'Total current assets' for Belocal?

According to Belocal's 2025 Franchise Disclosure Document, as of June 30, 2025, the company's 'Due from affiliate' is listed as $4,217,245, while the 'Total current assets' are $12,178,026. This means that the amount due from its affiliate represents a significant portion of Belocal's total current assets.

For a prospective franchisee, this indicates that Belocal relies on transactions with its affiliate for a substantial part of its current assets. The 'Due from affiliate' represents money owed to Belocal by its affiliate, N2 Company, for services rendered. A high 'Due from affiliate' balance relative to total assets suggests that the financial health of Belocal is closely tied to the financial dealings and stability of its affiliate.

It's important for potential franchisees to understand the nature of these related-party transactions and how they might impact Belocal's financial performance. While related-party transactions are not inherently problematic, they can create potential risks if the affiliate experiences financial difficulties or if the terms of the transactions are not arm's length. Franchisees should inquire about the details of the transactions between Belocal and its affiliate, including the terms of payment and the potential impact on Belocal's financial stability.

Prospective franchisees should also consider how changes in the relationship with the affiliate could affect Belocal's operations and financial condition. Understanding the dynamics between Belocal and its affiliate is crucial for assessing the overall risk and opportunity associated with investing in a Belocal franchise.