What was the amount of Chesters' related party receivables at the end of 2022?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| Purchase of inventory and other goods | $ 8,384,518 | $ 8,682,339 |
| Sales of inventory and other goods | $ 1,079 | $ 8,669 |
| Rental expense | $ 390,679 | $ 1,143,300 |
At December 31, the balances from and to rel
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the amount of related party receivables at the end of 2022 was $684,044. This indicates the amount of money owed to Chesters by related parties, such as entities with common ownership. These figures are derived from the company's financial statements, which have been audited by an independent auditor.
Related party transactions are common in franchise systems, as franchisors often have affiliated companies that provide goods or services to the franchise network. It is important for a prospective franchisee to understand the nature and extent of these related party transactions, as they can impact the franchisee's costs and profitability.
In Chesters's case, the related party receivables represent amounts due from these affiliated entities. Monitoring these balances is important for assessing the financial health of both Chesters and its related parties. Significant fluctuations in these receivables could signal changes in the financial stability of these entities, which could indirectly affect franchisees.
Prospective franchisees should carefully review Chesters's financial statements and related party disclosures to understand the potential impact of these transactions on their investment. Understanding the relationships and financial dealings between Chesters and its related parties can provide valuable insights into the overall financial health and stability of the franchise system.