What was the amount of the Payable to Related Party (long-term liability) for Expense Reduction Analysts in 2023?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
s | | 5,148 | | 5,148 | | Deferred Tax Asset | | 29,195 | | 155,408 | | Intangible Assets, Net | | 5,640,216 | | 5,640,216 | | Total Other Assets | | 8,357,318 | | 7,837,724 | | Total Assets | S | 11,921,252 | s | 10,518,455 |
| 2023 | 9 | (restated) 2022 | ||
|---|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | 9 | |||
| CURRENT LIABILITIES | ||||
| Accounts Payable | $ | 408,147 | $ | 344,211 |
| Current Operating Lease Liability | 52,913 | 60,680 | ||
| Note Payable, Current Portion | 145,650 | 428,250 | ||
| Accrued Expenses | 257,859 | 115,928 | ||
| Training Fees Payable | 108,000 | 66,250 | ||
| Due to Related Parties | 1,090,094 | 612,319 | ||
| Due to Franchisees | 56,163 | 37,906 | ||
| Deferred Revenue | 537,236 | 447,970 | ||
| Income Tax Payable | 52,831 | |||
| Total Current Liabilities | 2,656,062 | 2,166,345 | ||
| LONG-TERM LIABILITIES | ||||
| Note Payable, Noncurrent Portion | 145,650 | |||
| Noncurrent Operating Lease Liability | 166,285 | |||
| Deferred Revenue, Noncurrent Portion | 3,170,631 | 2,674,961 | ||
| Payable to Related Party | 430,431 | 1,185,382 | ||
| Total Long-Term Liabilities | - | 3,767,347 | Ŷ. | 4,005,993 |
| Total Liabilities | 6,423,409 | 6,172,338 | ||
| STOCKHOLDERS' EQUITY | ||||
| Common Stock - Par Value $0.001 per Share; 100,000,000 Shares | ||||
| Authorized; 18,777,777 Shares Issued and Outstanding | 18,778 | 18,778 | ||
| Additional Paid-In Capital | 4,209,422 | 4,209,422 | ||
| Retained Earnings (Accumulated Deficit) | - | 1,237,283 | 91,868 | |
| Contro |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the Payable to Related Party, which is classified as a long-term liability, was $430,431 as of December 31, 2023. This amount reflects what Expense Reduction Analysts owed to MIC (Montgomery Investment Company SA) for unpaid royalties and other advances.
For a prospective franchisee, this indicates that Expense Reduction Analysts has financial obligations to related parties that are considered long-term. It is important to note that these payables are to MIC, the parent company, for royalties and advances, which are standard aspects of the franchise relationship.
Understanding the nature and terms of these related-party transactions is crucial for assessing the financial stability and operational relationships of Expense Reduction Analysts. A potential franchisee should investigate the details of these transactions, including the repayment terms and any potential impact on the franchisor's financial health, to ensure there are no adverse effects on the support and services provided to franchisees.