What was the total amount due to related parties from 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, the total amount due to related parties as of December 31, 2023, was $36,001. This amount represents payroll costs and other operating costs paid by a related party on behalf of Casiola Franchise, LLC. The related parties are Casiola Miami, LLC and Casiola Orlando, LLC, with whom Casiola Franchise, LLC has common ownership.
Additionally, Casiola had a receivable from a related party (Casiola Miami, LLC) in the amount of $1,017, representing royalties due to Casiola. Casiola also recognized $11,192 of royalty income from Casiola Miami, LLC during the period from January 6, 2023, to December 31, 2023. These royalty transactions stem from a rental franchise agreement where Casiola Miami, LLC pays a 20% commission on net rental revenue and 4.9% royalties from marketing and booking fees.
For a prospective franchisee, it is important to understand these related-party transactions, as they can impact the financial performance and stability of the franchise. It is advisable to inquire about the nature of these relationships and how they might affect the franchisee's operations and profitability. Understanding the terms of the agreements with related parties is crucial for assessing the overall financial health of the Casiola franchise system.