What was the total amount due from related parties to Casiola in 2023?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ash at their operating bank account as of December 31, 2023.
4. RELATED PARTY TRANSACTIONS
The Company has common ownership with Casiola Miami, LLC and Casiola Orlando, LLC. At December 31, 2023, the Company had a payable to the related party in the amount of $36,001 which represents payroll cost and other operating cost paid by the related party in behalf of this Company.
The Company collects royalty revenue from a location owned and operated by Casiola Miami, LLC under a rental franchise agreement that requires Casiola Miami, LLC to pay a 20% Commission on net rental revenue and 4.9% royalties from marketing and booking fees to the Company. The Company recognized $11,192 of royalty income from Casiola Miami, LLC during the period from January 6, 2023 to December 31, 2023 which is included in the statement of operations. T
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, as of December 31, 2023, the total amount due from related parties was $1,017. This amount represents royalties due from Casiola Miami, LLC. Casiola has common ownership with Casiola Miami, LLC and Casiola Orlando, LLC.
The FDD specifies that Casiola recognized $11,192 of royalty income from Casiola Miami, LLC during the period from January 6, 2023 to December 31, 2023. Casiola Miami, LLC is required to pay a 20% commission on net rental revenue and 4.9% royalties from marketing and booking fees to Casiola.
The balance sheet also indicates a payable to related parties of $36,001, representing payroll and other operating costs paid by the related party on behalf of Casiola. Understanding these related party transactions is crucial for prospective franchisees to assess the financial health and operational dependencies of Casiola.