What was the change in 'Due from related parties' for Fat Shack in 2024?
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 decreased in 2024. As of December 31, 2024, the balance was $412,871, while on December 31, 2023, the balance was $673,871. This represents a decrease of $261,000 in the amount due from related parties during 2024.
This information is relevant to potential Fat Shack franchisees because it provides insight into the financial transactions between Fat Shack and its related entities. A significant change in the 'Due from related parties' balance, such as the decrease observed in 2024, could indicate shifts in the company's financial strategy, inter-company lending practices, or overall financial health.
Prospective franchisees should consider this information as part of their due diligence. It is advisable to inquire with Fat Shack about the nature of these related party transactions, the reasons for the decrease in the balance, and the potential impact on the franchise system. Understanding these relationships and financial flows can help franchisees assess the financial stability and transparency of the franchisor.