What was the reported total of payables to affiliates for Crowne Plaza in the later year presented?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
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Proposed Hotel Summary continued
Competitive Information
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| Year Ended December 31 | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Operating activities | |||||
| Net income | $ 67,522,988 | $ 54,303,422 | $ 43,449,141 | ||
| Reconciliation of net income to net cash | |||||
| provided by operating activities: | |||||
| Contract assets deduction in revenue (Note 3) | 589,313 | 11,699,506 | 9,750,037 | ||
| Accrued but unpaid interest on line of | |||||
| credit due from affiliate | (29,591,411) | (27,815,534) | (13,274,848) | ||
| Release for expected credit losses | – | – | (11,930,910) | ||
| Changes in assets and liabilities: | |||||
| Accounts receivable | (9,054,565) | (1,832,448) | 781,783 | ||
| Deferred revenue | (120,835) | (62,076) | 378,967 | ||
| Accounts payable and accrued expenses | 5,000 | 2,997 | |||
| 4,000 |
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the payables to affiliates for the year ended December 31, 2024, totaled $25,806,849. The payables to affiliates for the year ended December 31, 2023, totaled $11,670,366. These figures reflect changes in assets and liabilities related to the company's operating activities.
Payables to affiliates represent amounts owed by Crowne Plaza to related entities, such as its parent company or subsidiaries. These payables can arise from various inter-company transactions, including services provided, expenses allocated, or other financial obligations. Understanding the nature and magnitude of these payables is important for assessing the financial relationships between Crowne Plaza and its affiliates.
For a prospective franchisee, it is crucial to understand the nature of these related-party transactions and their potential impact on the franchise's financial performance. Franchisees should inquire about the specific types of transactions that give rise to these payables, the terms of payment, and any potential risks or benefits associated with these relationships. Additionally, franchisees should assess whether the terms of these transactions are fair and reasonable, and whether they could potentially affect the profitability of their franchise.