What was the remaining balance due from the shareholder to Burros Fries as of December 31, 2023?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
or a total amount of $7,290.
NOTE 3 – RELATED PARTY TRANSACTIONS
During 2023, the Company advanced and received repayment of advances from the shareholder. The rem
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, as of December 31, 2023, the remaining balance due from the shareholder to Burros Fries was $57,802. This balance reflects advances made to the shareholder and subsequent repayments throughout the year.
This type of related-party transaction, where a shareholder receives advances from the company, is not uncommon, but it's important for prospective franchisees to understand the implications. It indicates a financial relationship between the company and its shareholder that goes beyond typical investment.
For a potential Burros Fries franchisee, this information highlights the importance of carefully reviewing the company's financial statements and understanding the nature of related-party transactions. It would be prudent to inquire about the terms of these advances, the repayment schedule, and the reasons for such transactions to assess any potential impact on the financial stability of Burros Fries.