What was the amount of advances from related party for Caring Senior Service in 2022?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue: | |||
| Royalty fees | $ 382,217 | $ 333,983 | $ 342,194 |
| Software fees | 82,681 | 95,303 | 75,469 |
| Reimbursed charges from franchises | 89,943 | 61,382 | 55,992 |
| Total Revenue | $ 554,841 | $ 490,668 | $ 473,655 |
| Amounts included in Accounts Receivable - Trade | |||
| at December 31 | $ 6,513 | $ 47,203 | $ 37,869 |
| Amounts included in Accounts Payable - Trade | |||
| at December 31 | $ 2,858 | $ 3,232 | $ 528 |
Advances from Related Party
The Partnership leases its employees from Caring Senior Management, LLC under a management agreement. The agreement provides for the staffing requirements of the Partnership, including employee benefits and processing of payroll and payroll-related taxes. Caring Senior Management, LLC is owned by one of the partners of the Partnership. Total salaries, wages, payroll taxes and related benefits amounted to $852,689, $1,276,777, and $988,026 for the years ended December 31, 2024, 2023, and 2022, respectively. The Partnership has a balance payable to Caring Senior Management, LLC of $95,535, $97,126, and $54,538 as of December 31, 20
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the advances from related party totaled $54,538 as of December 31, 2022. This balance is payable to Caring Senior Management, LLC, which is owned by one of the partners of the Partnership. The advances are recorded as a short-term advance from a related party on the balance sheet.
This indicates that Caring Senior Service has financial relationships with related parties, specifically Caring Senior Management, LLC. These advances represent money owed to this related entity for services rendered. For a prospective franchisee, this highlights the importance of understanding the financial structure of the franchise and the nature of its related-party transactions.
It's important to note that these related-party transactions are not uncommon in franchise systems. However, franchisees should carefully review these transactions to ensure they are conducted at arm's length and do not create any conflicts of interest or unfair advantages. Understanding the terms and conditions of these advances, including interest rates and repayment schedules, is crucial for assessing the financial health and stability of Caring Senior Service.
Prospective franchisees should seek clarification from Caring Senior Service regarding the purpose and terms of these related-party advances. Understanding the rationale behind these transactions and their potential impact on the franchise's financial performance is essential for making an informed investment decision.