What was the change in due from affiliate for Chocolate Bash in 2023?
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 |
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 2023 was a negative $35,956. In 2022, there was no change listed, and in 2021, the change was $1,250. This indicates a significant shift in financial transactions or balances between Chocolate Bash and its affiliates during the 2023 fiscal year.
The term 'due from affiliate' typically refers to amounts owed to Chocolate Bash by a related entity, such as a subsidiary or a company under common control. A negative change of $35,956 in 2023 suggests that either the affiliate paid down a significant portion of its debt to Chocolate Bash, or Chocolate Bash increased the amount it owed to the affiliate. Understanding the nature of these transactions is crucial for assessing the financial health and inter-company relationships of Chocolate Bash.
A prospective franchisee should seek clarification from Chocolate Bash regarding the specific transactions that led to this change. Understanding the details behind this fluctuation can provide valuable insights into the financial dynamics between Chocolate Bash and its affiliates, and how these relationships might impact the franchisee's business operations and financial stability.