As of December 31, 2024, what was the related party unpaid balance for Dog Haus?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
ent portion of the lease liability was $34,067 and $121,020. As of and for the year ended December 31, 2024, the discount rate for the lease was 3.75% and the remaining life is three months.
As of December 31, 2024 and 2023, ROU asset and lease liability related to the operating lease was as follows:
| 2024 | 2023 |
|---|
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the related party unpaid balance as of December 31, 2024, was $649,780. These receivables are noninterest bearing and due upon demand. These affiliated entities are related through common ownership and business activities. Dog Haus did not impute any interest with respect to this advance and wrote off $105,791 for the year ended December 31, 2024.
This indicates that Dog Haus engages in financial transactions with affiliated companies. The fact that these receivables are non-interest bearing and due upon demand suggests a degree of flexibility in these inter-company dealings. However, the write-off of $105,791 in 2024 could signal potential risks associated with these related-party transactions.
Prospective franchisees should be aware of these related-party transactions, as they could potentially impact the financial stability of Dog Haus. It would be prudent to inquire about the nature of these relationships, the specific business activities involved, and the reasons for the write-off. Understanding the dynamics of these related-party transactions can provide a more comprehensive view of the company's financial health and risk profile.