What is the total amount of Dermani Medspa's long-term liabilities?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
head), a related entity wholly owned by the sole member of the Company, made advances in the amount of $20,000 to the Company. The funds were provided by Buckhead to meet current obligations and will be repaid as funds become available. The advance from Buckhead is non‐interest bearing and has been classified as a long‐term liability in the accompanying balance sheet because there is no requirement for the funds to be repaid during the next year. The balance as of December 31, 2022 was $20,000.
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022
5. RELATED PARTY ACTIVITY (CONTINUED)
In 2022, dermani Sandy Springs, a related entity wholly owned by the sole member of the Company, made advances in the amount of $30,000 to the Company. The funds were provided by Sandy Springs to meet current obligations and will be repaid as funds become available. The advance from Sandy Springs is non‐interest bearing and has been classified as a long‐term liability in the accompanying balance sheet because there is no require
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the company had long-term liabilities totaling $80,000 as of December 31, 2022. These liabilities consist of advances from two related entities, dermani Buford and dermani Vinings, both wholly owned by the sole member of Dermani Medspa Franchising, LLC. Dermani Buford made advances of $50,000, while dermani Vinings made advances of $30,000. These funds were provided to Dermani Medspa to meet current obligations.
The advances from both Buford and Vinings are non-interest bearing. They are classified as long-term liabilities because there is no requirement for the funds to be repaid within the next year. Instead, the agreement states that these advances will be repaid as funds become available to Dermani Medspa.
For a prospective franchisee, this information provides insight into Dermani Medspa's financial structure and its reliance on related-party funding. While the non-interest bearing nature of the loans is favorable, the franchisee should consider the implications of these liabilities on the company's overall financial health and its ability to support franchisees. It would be prudent to inquire about the company's plans for repaying these liabilities and how it might affect future financial decisions.