What was the total rental expense paid by Chesters to related parties in 2022?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
ertain entities with common ownership and other related parties. The following table summarizes these transactions:
| 2024 | 2023 | |
|---|---|---|
| Purchase of inventory and other goods | $ 4,209,907 | $ 8,384,518 |
| Rental expense | $ - | $ 390,679 |
| At December 31, the balances from and to related parties |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the provided financial statements do not explicitly detail the rental expenses paid to related parties in 2022. The statements do show that in 2023, Chesters had rental expenses of $390,679.
However, the financial statements do include information on balances due from related parties. In 2022, Chesters was due $684,044 from related parties, which increased to $1,117,539 in 2023. These figures represent the amounts owed to Chesters by related entities, not rental expenses paid by Chesters.
To obtain the specific amount of rental expenses paid to related parties in 2022, a prospective franchisee should directly ask Chesters for clarification. Understanding these related-party transactions is crucial for assessing the financial health and transparency of the franchise system.