Where are the related party transactions for Best Brains during 2023 reported?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 9 – RELATED PARTY TRANSACTIONS
All the related party transactions during the year 2023 & Balances as on Dec 31st, 2023 are reported under Audit report annexure titled - "Related Party Disclosures"
NOTE 10 - SHAREHOLDER DISTRIBUTIONS
Shareholders drawings were $ 64,700 for the year 2023. No 1099-Dividend statement has been issued for it.
NOTE 11 - SBA/PPP LOANS
The Corporation also received an SBA Loan of $150,000 on May 18, 2020 as a part of Corona virus relief package. Interest will accrue at the rate of 3.75% per annum on the funds advanced. Interest of $8,041 is paid, while no principal repayments have been made in 2023 for the same.
Best Brains, Inc. Annexure Forming Part of Notes to Financial Statements
Related Party Disclosures
Transactions with related parties during the year ended December 31st, 2023
( Amount in USD) PURCHASE OF MATERIALS /SERVICES 1,096,075.00 A.1 Best Brains India A.2 Advansoft International Inc 898,225.00 661,500.00 A.3 Advansoft India 97,375.08 A.4 A1 Kaiser A.5 Best Brains of Schaumburg, INC A.6 Adventures India Pvt. Ltd 86,000.00 SALE OF MATERIALS / SERVICES B.1 Best Brains of Schaumburg, INC 29,258.49 B.2 Best Brains- Canada 460,145.82 B.3 Nala Robotics 74,355.12
Receivables / Payables From/ To related parties as at December 31st , 2023
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, all related party transactions during 2023, and balances as of December 31, 2023, are reported under the audit report annexure titled "Related Party Disclosures." This annexure provides details of transactions with related parties, including the purchase and sale of materials or services, along with receivables and payables.
Specifically, the annexure lists transactions with entities such as Best Brains India, Advansoft International Inc, Advansoft India, A1 Kaiser, Best Brains of Schaumburg, INC, Adventures India Pvt. Ltd, Best Brains- Canada, Nala Robotics and Best Brains Online Learning. For example, purchases of materials or services from Best Brains India amounted to $1,096,075.00, while sales of materials or services to Best Brains of Schaumburg, INC totaled $29,258.49.
The annexure also details the receivables and payables from/to related parties as of December 31, 2023. For instance, A1 Kaiser Inc. had a receivable of $12,095.92, while Advansoft India had a payable of $1,335,500.00. These disclosures are crucial for prospective franchisees to understand the financial relationships Best Brains has with other entities and individuals, which could potentially impact the franchise's operations and financial stability.
Understanding these related party transactions is important for a potential franchisee because it sheds light on the flow of funds and resources within the Best Brains network. It is common practice for franchise FDDs to include related party transaction information in their financial statements. Reviewing these disclosures can help a franchisee assess whether these transactions are conducted at arm's length and are fair to all parties involved. If a franchisee has further questions, they should consult with a financial advisor.