What was the balance due from the Member to Chatime at December 31, 2023?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ified as noncurrent liabilities. There were no amounts due to affiliates at December 31, 2023.
Due to/from member
In the ordinary course of business, the Company periodically advances funds to and receives funds from the Member of the Company. No interest is charged on these advances. Advances to and from the Member are noninterest bearing and have no specific date for repayment. The balance due from Member amounted to $20,108 and $300,000 at December 31, 2024 and 2023, respectively. Management expects these balances to be settled within the next year. The balance due to Member amounted to $60,015 and $- at De
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the balance due from the Member to Chatime Franchise LLC was $300,000 as of December 31, 2023. The FDD also states that advances between Chatime and its member are noninterest bearing and do not have a specific repayment date. Management expected the balance to be settled within the next year.
This indicates the parent company, Chatime Global LLC, owed Chatime Franchise LLC $300,000 at the end of 2023. These related-party transactions are common in franchise systems, where the parent company provides financial support or receives funds from its subsidiaries.
For a prospective franchisee, this information provides insight into the financial relationship between Chatime and its parent company. While the advances are expected to be settled within a year, the absence of interest and specific repayment terms suggests a flexible arrangement. A franchisee might want to inquire about the nature of these advances and their potential impact on Chatime's financial stability and operations. Understanding these related-party transactions can help a franchisee assess the overall financial health and risk associated with investing in a Chatime franchise.