What was the amount due to related parties for Cinch I.T. in 2021?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| CINCH FRANCE | HISE, LLC | |||
|---|---|---|---|---|
| BALANCE S | ||||
| DECEMBER 31, 20 | 22 AND 2021 | |||
| $15-50-50MS(7M-4-5 | 40.000 | |||
| ASSET | S | 2022 | 2021 | |
| CURRENT ASSETS | - | |||
| Cash | S | 189.038 | S | 101,234 |
| Receivables: | ||||
| Trade | 54,720 | 112,709 | ||
| Employee Retention Credit | 7 | 32.487 | ||
| Prepaid expenses | 14.494 | 14,697 | ||
| TOTAL CURRENT ASSETS | S _ | 258,252 | S | 261.127 |
| LIABILITIES AND MEMBER | R'S EQUITY (DEFIC | Tr) | ||
| CURRENT LIABILITIES | 21194 | 16 | 43.594 | |
| Payables - trade | S- | 5,155 | 5 | 26,973 |
| Accrued liabilities | 16,534 | 19,451 | ||
| Current portion of deferred revenue | 55,500 | 102,200 | ||
| Due to re |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the amount due to related parties as of December 31, 2021, was $112,866. This figure represents the liabilities Cinch I.T. had to entities related through common ownership. These payables are unsecured and do not bear interest, and were classified as short-term on the balance sheets because management expected the entire amount to be repaid within twelve months.
Related party transactions are common in franchise systems, and it is important for prospective franchisees to understand the nature and extent of these transactions. In this case, the amount due to related parties reflects financial obligations Cinch I.T. has to other entities with shared ownership, which could include loans or other forms of financial support.
For a potential Cinch I.T. franchisee, this information is relevant because it provides insight into the financial relationships Cinch I.T. has with its related entities. Understanding these relationships can help a franchisee assess the financial stability and potential risks associated with investing in a Cinch I.T. franchise. It is advisable for prospective franchisees to inquire about the details of these related party transactions and their potential impact on the franchise system's operations and financial health.