What were the payments to related party for Bevaris Alliance in 2023?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| NET INCOME (LOSS) | $( 57,665 ) | $ 130,380 |
| 2023 | 2022 | |
|---|---|---|
| BALANCE, BEGINNING OF YEAR | $ 170 , 724 | $ 42,901 |
| CAPITAL CONTRIBUTIONS | _ | |
| SHAREHOLDER DISTRIBUTIONS | ( 197) | ( 2,557) |
| NET INCOME (LOSS) | _(_57,665) | 130,380 |
| BALANCE, END OF YEAR | $ 112,862 | $ 170,724 |
| 2023 | 2022 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: Net income(loss) | ¢/ 57 665\ | 6 120 200 |
| Adjustments to reconcile net | $( 57,665 ) | $ 130,380 |
| income(loss) to net cash provided | ||
| (used) by operating activities: | 14,656 | 6,107 |
| Depreciation and amortization | ||
| Changes in operating assets and | 14,000 | 0,107 |
| liabilities: | ||
| Decrease in accounts receivable | 24,425 | ( 29,829) |
| Increase in prepaid expenses | ||
| Increase in prepart expenses Increase in accounts payable | ( 30,241) 3,612 | 27,972 |
| Increase in credit card payable | 3,068 | |
| Increase in insurance payable | 25,929 | 1 005 |
| Decrease in income taxes payable | ( 3,742) | 1,985 |
| Total adjustments | 37,707 | 6,235 |
| NET CASH PROVIDED (USED) BY | ||
| OPERATING ACTIVITIES | ( 19,958 ) | 136,615 |
| CASH FLOWS FROM INVESTING | ||
| ACTIVITIES: | . 0.254 | |
| Security deposit | ( 2,354 ) | ( 1,360) |
| NET CASH PROVIDED (USED) BY INVESTING | • | |
| ACTIVITIES | ( 2,354 ) | ( 1,360 ) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Advances from related party | - | 3 , 570 |
| Payments to related party | ( 77,869) |
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, payments to related parties in 2023 totaled $77,869. This figure is part of the cash flow statement and represents actual cash outflows from Bevaris Alliance to its related entities during the year.
Specifically, these payments are categorized under 'CASH FLOWS FROM FINANCING ACTIVITIES,' indicating that they are treated as a form of financing transaction rather than operational expenses. This distinction is important because it provides insight into how Bevaris Alliance manages its financial relationships with affiliated companies.
Understanding the nature and magnitude of related-party transactions is crucial for prospective franchisees. It's important to investigate what these payments cover, the terms of any agreements, and whether these arrangements are at arm's length. This helps assess the financial stability and potential conflicts of interest within the Bevaris Alliance franchise system.