What was the balance due to Fat Shack from related parties as of December 31, 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 to Fat Shack from related parties as of December 31, 2023, was $673,871. The FDD also provides figures for the balance due from related parties as of December 31, 2024, and December 31, 2022, which were $412,871 and $603,870, respectively.
This information is found within the notes to the company's financial statements. These balances represent funds that Fat Shack advanced to related entities. Related parties could include individuals or companies that have a close relationship with Fat Shack, such as its owners, executives, or affiliated businesses.
For a prospective franchisee, this indicates the level of financial transactions Fat Shack has with its related entities. While it's common for companies to have dealings with related parties, it's important to ensure these transactions are conducted fairly and do not negatively impact the financial health of the franchise system. A potential franchisee might want to inquire about the nature of these related party transactions and how they benefit Fat Shack and its franchisees.