What was the amount of advances made to Dermani Medspa by dermani Buckhead in 2021?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
69,125 | | | Less: | (17,819) | | | accumulated | | | | depreciation | | | | Total | $ 51,306 | | Depreciation expense for the year ended December 31, 2023 was $7,621.
4. ACCRUED LIABILITIES
Accrued liabilities consist of the following as of December 31, 2023:
| | 2023 | |-------------------
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, in 2021, dermani Buckhead made advances to Dermani Medspa in the amount of $20,000. These funds were provided to meet current obligations. The advance was non-interest bearing and was repaid in 2023.
This type of related-party transaction, where funds are advanced to the company by entities with common ownership, is not uncommon. It is important to note that the advance from Buckhead was non-interest bearing, which could be seen as favorable to Dermani Medspa.
Prospective franchisees should be aware of these related-party transactions and how they might affect the financial stability of Dermani Medspa. While the advance from dermani Buckhead was eventually repaid, it highlights the company's reliance on related entities for financial support. Franchisees may want to inquire about the company's plans for future financing and its ability to operate independently of these related-party advances.