What was the change in due from affiliate for Chocolate Bash in 2021?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
D DECEMBER 31, 2023 & DECEMBER 31, 2022 & DECEMBER 31, 2021
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| OPERATING ACTIVITIES | |||
| Net Income | $ 15,483 | $ 28,687 | $ 38,808 |
| Non-Cash Adjustments | |||
| Changes in Deferred Revenue | 24,896 | (23,021) | 22,000 |
| Changes in Due From Affiliate | (35,956) | - | 1,250 |
| Changes in Accounts Receivable | 19,041 | (21,194) | - |
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | 23,464 | (15,528) | 62,058 |
| INVESTING ACTIVITIES | |||
| NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | - | - | - |
| FINANCING ACTIVITIES | |||
| Owner's Contribution (net) | (61,122) | (30,100) | 17,940 |
| NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | (61,122) | (30,100) | 17,940 |
| NET INCREASE (DECREASE) IN CASH | (37,658) | (45,628) | 79,998 |
| CASH AT BEGINNING OF PERIOD | 59,295 | 104,922 | 24,924 |
| CASH AT |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the change in due from affiliate in 2021 was $1,250. This figure is part of the statement of cash flows, specifically within the operating activities section.
The "due from affiliate" line reflects transactions between Chocolate Bash and any related entities. A positive change, like the $1,250 in 2021, indicates that the affiliate owed Chocolate Bash more at the end of the year than at the beginning. This could be due to services provided, loans extended, or other inter-company transactions.
For a prospective franchisee, this detail provides insight into Chocolate Bash's financial dealings with related parties. While a single year's change might not be significant on its own, tracking this line item over several years, as presented in the FDD, can reveal trends and the extent of Chocolate Bash's reliance on or support of its affiliates. It is important to understand these relationships to assess the overall financial health and stability of Chocolate Bash.