What was the amount due from related parties for Best In Class Education Center in 2024?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
to be cash equivalents. As of December 31, 2024 and 2023, the Company had approximately $4,056 and $58,720 respectively in cash in its bank accounts.
4. ACCOUNTS RECEIVABLE
As of December 31, 2024 and 2023 accounts receivable consisted of the following:
| Royalty receivable | $ | 15,521 | $ 13,219 |
|---|---|---|---|
| Initial franchise fees receivable | 30,000 | ||
| Transfer fee receivable | 26,000 | 5,000 | |
| Other franchise-related fees receivable | 10,594 | - | |
| Brand fund income receivable | 2,629 | ||
| Total Accounts Receivable | $ | 84,744 | $ 18,219 |
5. RELATED PARTY TRANSACTIONS
BIC Franchise System Corporation and Best in Class Education, LLC are affiliated entities under common ownership. As of December 31, 2024, and 2023, the Compan
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, the company had outstanding receivables from its affiliate totaling $14,527 as of December 31, 2024. These receivables represent shared revenue collected on behalf of BIC Franchise System Corporation. Additionally, the company had outstanding receivables from its owners amounting to $24,358 as of the same date, representing amounts due from the owners for obligations incurred during the normal course of business. Furthermore, there was a balance due to Lam's Tutoring Service, Inc. of $12,747 as of December 31, 2024. The same member of Best In Class Education Center also has an ownership interest in Lam's Tutoring Service, Inc. These related party transactions can provide insight into the financial relationships and potential dependencies within the Best In Class Education Center network.
For a prospective franchisee, understanding these related party transactions is crucial for assessing the financial stability and potential conflicts of interest within the Best In Class Education Center franchise system. The amounts due from affiliates and owners could indicate the financial health of those related entities and their ability to meet their obligations. The transactions with Lam's Tutoring Service, Inc. may also raise questions about the terms and conditions of those transactions and whether they are conducted at arm's length.
It is important for potential franchisees to carefully review the financial statements and related party disclosures in the FDD to gain a comprehensive understanding of these relationships and their potential impact on the franchise. Further due diligence, including discussions with existing franchisees and financial advisors, is recommended to assess the risks and opportunities associated with these related party transactions. A prospective franchisee should seek clarification from Best In Class Education Center regarding the nature of these transactions, the terms of repayment, and any potential impact on the franchisee's business.