According to Bevaris Alliance's 2024 Franchise Disclosure Document, the balance due to related party as of December 31, 2023, was $9,069 after payments to the related party. The provided table outlines the changes in the balance due to related parties, starting with a balance of $83,368 on December 31, 2022. System marketing charges applied, rent expense split, and un-reimbursed out of pocket expenses affected the balance, resulting in a balance of $86,938 on December 31, 2022. Payments to related party were ($77,869), leading to the final balance of $9,069 as of December 31, 2023.

This information is important for prospective franchisees as it provides insight into the financial transactions between Bevaris Alliance and its related parties. Related-party transactions are common in franchise systems, but it's crucial to understand the nature and extent of these transactions to assess the financial health and stability of the franchisor. The "due to related party" account primarily represents expenses paid by Bevaris Alliance, Inc. on behalf of the Company. These advances do not bear interest, and no formal repayment terms have been established.

Understanding the details of these related-party transactions can help a potential franchisee evaluate the franchisor's financial practices and potential conflicts of interest. It is also important to note that Bevaris Alliance, Inc. (BAI) is owned by the member of the Company. BAI paid, on behalf of the Company, legal and professional fees as well as other costs in connection with the establishment of the Company and the development of the franchise network. As discussed in Note 9, the Company shares office space with BAI. BAI is also a franchisee of the Company. Franchise fees incurred by BAI and payable to the Company during 2023 and 2022 were $99,547 and $72,226, respectively. During 2023 and 2022, the Company was charged management fees, under an informal management agreement, by the Company's member of $486,000 and $96,000, respectively.

Prospective franchisees should carefully review these transactions and seek clarification from Bevaris Alliance regarding the terms and conditions of these related-party arrangements. Understanding the flow of funds and the nature of the expenses can provide a clearer picture of the franchisor's financial management and its relationship with affiliated entities. This information, combined with other financial data in the FDD, can assist in making an informed decision about investing in a Bevaris Alliance franchise.