What were Deka Lash's notes receivable from related parties as of 12/31/2023?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
s used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about DL Franchising, LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, amount other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
The Mumford Group Bountiful, Utah
February 24, 2024
| | 1 | 2/31/2023 | . 1 | 2/31/2022 | 7 1 | 12/31/
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the notes receivable from related parties totaled $514,485 as of December 31, 2023. This represents a loan from Deka Lash to an entity owned by the same entity that owns 100% of Deka Lash.
This loan does not have a specified maturity date and does not accrue interest. Notes receivable represent money owed to Deka Lash, and in this case, it is owed by a related party.
For a prospective franchisee, this related-party transaction is important to note. It indicates how Deka Lash manages its finances and its relationships with affiliated entities. While not necessarily a negative, it's a detail that a franchisee candidate should understand to assess the financial practices of the franchisor. It is important to note that this is a loan from Deka Lash to a related party, not the other way around.