What were the advances from (payments to) related parties for Expense Reduction Analysts in 2023?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
gher than what would be expected if the federal statutory rate were applied to income before income taxes primarily because of certain expenses deductible for financial reporting purposes that are not tax deductible.
NOTE 9 RELATED PARTY TRANSACTIONS
During 2006, the Company received a loan from ERA International MIC (which was subsequently acquired by MIC) totaling $734,000. The note bore interest at 1.75% per annum and contained no fixed repayment terms, and the loan was repaid during 2008. The Company owes MIC a total of $101,078 for accrued interest payable at December 31, 2024 and 2023 on this loan. The Company also owes MIC a total of $136,451 and $430,431 at both December 31, 2024 and 2023, respectively, for unpaid royalties and other advances. These amounts are included in Payable to Related Party within the long-term liabilities portion of the balance sheet.
MIC provides consulting and management services to the Company through a wholly owned subsidiary, Associates Support & Network Services Ltd. (ASNS), a UK registered associate company. During 2024 and 2023, the Company expensed a total of 276,701 and 264,558, respectively, for these services. As of December 31, 2024 and 2023, the Company owed ASNS $3 and $264,660, respectively, for these services. The amounts are included in Due to Related Parties within the current liabilities portion of the balance sheet.
The Company provided significant technology support and development functions to affiliates in other countries and management services to a local affiliate, Southwest Cost Strategies. Management services were $676,000 and $667,500 for the years ended December 31, 2024 and 2023, respectively. The Company was owed $1,024,215 and $997,500 at December 31, 2024 and 2023, respectively, to reflect these costs, resources, and services. These services are performed in the ordinary course of business
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, in 2023, the company owed MIC a total of $430,431 for unpaid royalties and other advances. These amounts are included in Payable to Related Party within the long-term liabilities portion of the balance sheet.
Additionally, Expense Reduction Analysts expensed $264,558 for consulting and management services provided by Associates Support & Network Services Ltd. (ASNS), a wholly-owned subsidiary of MIC. As of December 31, 2023, Expense Reduction Analysts owed ASNS $264,660 for these services, which is included in Due to Related Parties within the current liabilities portion of the balance sheet.
Expense Reduction Analysts also provided technology support and development functions to affiliates in other countries and management services to a local affiliate, Southwest Cost Strategies. The management services totaled $667,500 for the year ended December 31, 2023. The company was owed $997,500 at December 31, 2023, to reflect these costs, resources, and services. These amounts are included within Due from Related Parties on the balance sheet.