What was the amount due from related parties for Fat Shack in 2023?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
t broken down as below:
Due in 2025 $ 118,326 $ 118,326
9. RELATED PARTIES
The Company from time-to-time advances funds to related entities. As of December 31, 2024, 2023 and 2022, the balance
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the balance due from related parties as of December 31, 2023, was $673,871. This indicates the amount of funds that related entities owed to Fat Shack at that specific point in time.
For a prospective franchisee, this information provides insight into the financial relationships Fat Shack has with other related entities. It's important to understand the nature of these related-party transactions, as they can impact the company's overall financial health and stability. A high balance due from related parties could suggest potential risks if these entities are unable to repay the amounts owed.
Understanding these related-party transactions is crucial for assessing the financial risks and opportunities associated with investing in a Fat Shack franchise. A potential franchisee should seek clarification from the franchisor regarding the nature of these related-party transactions, the terms of repayment, and the potential impact on the franchise system's financial stability.