What is the total amount of the accounts payable to related parties for Caring Senior Service?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
ts December 31, 2024, 2023, and 2022**
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| ASSETS | |||
| Current Assets | |||
| Cash and cash equivalents | $ 519,628 | $ 257,005 | $ 130,008 |
| Acounts receivable: | |||
| Trade | 82,374 | 23,729 | 44,144 |
| Related party | 6,513 | 430 | 37,869 |
| Prepaid expenses | 3,924 | 16,484 | 63,733 |
| Total Current Assets | 612,439 | 297,648 | 275,754 |
| Property and equipment, net of depreciation | - | 5,627 | 15,271 |
| Notes receivable | 51,846 | - | 12,000 |
| TOTAL ASSETS | $ 664,285 | $ 303,275 | $ 303,025 |
| LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | |||
| Current Liabilities | |||
| Accounts payable: | |||
| Trade | $ 220,999 | $ 229,137 | $ 238,542 |
| Related party | 2,858 | 3,232 | 528 |
| Accrued state franchise taxes | 23,126 | 17,941 | 10,738 |
| Advances from related party | 95,535 | 97,126 | 54,538 |
| Current portion of interest payable | 30,900 | - | - |
| Current portion of long-term debt | 6,750 | 16,921 | 10,037 |
| Current portion of note payable from related party | 6,845 | 3,869 | - |
| Deferred franchise fees | 133,181 | 94,937 | 53,970 |
| Total Current Liabilities | 520,194 | 463,163 | 368,353 |
| Non-Current Liabilities | |||
| Interest payable | 6,312 | - | - |
| Long-term debt, net of current portion | 499,258 | 497,222 | 512,946 |
| Note payable from related party | 189,285 | 196,131 | - |
| Total Non-Current Liabilities | 694,855 | 693,353 | 512,946 |
| TOTAL LIABILITIES | 1,215,049 | 1,156,516 | 881,299 |
| Partners' Capital | |||
| Partners' Capital (Deficit) - restated | 32,875 | (386,141) | (211,174) |
| Less: receivables from partner-ow |
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the accounts payable to related parties are detailed in the balance sheets. As of December 31, 2024, the accounts payable to related parties totaled $2,858. In the preceding years, the accounts payable to related parties were $3,232 as of December 31, 2023, and $528 as of December 31, 2022.
This liability represents amounts owed to entities or individuals affiliated with Caring Senior Service, such as partners or owners. These payables can arise from various transactions, including services rendered or goods provided by the related party to the franchise. It is important to note that these figures only reflect the accounts payable and do not include other forms of liabilities to related parties, such as advances or notes payable, which are listed separately.
For a prospective franchisee, understanding the nature and terms of these related-party transactions is crucial. It is essential to determine whether these arrangements are conducted at arm's length and on terms that are fair to the franchise. A significant increase in related-party payables could indicate a growing reliance on related entities for financing or operational support, which may warrant further investigation. Franchisees should seek clarification from Caring Senior Service regarding the specifics of these transactions and their potential impact on the franchise's financial performance.