What was the balance due to the Member from Chatime at December 31, 2024?
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 to the Member was $60,015 as of December 31, 2024. In contrast, there was no balance due to the Member as of December 31, 2023. The Member, Chatime Global LLC, is the sole owner of Chatime Franchise LLC. These balances arise from the company periodically advancing funds to and receiving funds from the Member. No interest is charged on these advances, and they have no specific date for repayment.
It's important to note that management does not expect these balances to be settled within the next year. This indicates that the amount owed to the Member is considered a long-term liability on Chatime's balance sheet. This arrangement reflects the financial relationship between Chatime and its parent company, Chatime Global LLC.
For a prospective franchisee, this related-party transaction highlights the financial interdependencies within the Chatime organization. While such transactions are not uncommon, understanding their nature and magnitude is crucial for assessing the financial health and stability of the franchise system. It is advisable for potential franchisees to inquire about the details of these transactions and their potential impact on the franchise's operations and profitability.