As of December 31, 2023, what was the balance due to related parties for Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Net Income (loss) | (1,193,655) | (365,606) | | Members' Contribution (Distribution) | (1,335) | (45) | | Members' Equity (Deficit) -Beginning | (365,651) | — | | Members' Equity (Deficit) -Ending | $ (1,560,641) | $ (365,651) |
FITSTOP USA, INC. STATEMENTS OF CASH FLOWS
| YEARS ENDED DECEMBER 31 | ||
|---|---|---|
| 2023 | 2022 | |
| Operating Activities | ||
| Net Profit(Loss) | $ (1,193,655) | $ (365,606) |
| Depreciation | 66,766 | — |
| Adjustments to reconcile net profit(loss) to net cash | ||
| provided b |
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the balance due to related parties as of December 31, 2023, was $828,986. This figure reflects the amount Fitstop owes to individuals or entities related to the company, such as owners, officers, or their family members, or other affiliated businesses.
The 'Due to related parties' line item is listed within the statement of cash flows under operating activities. For comparison, the balance due to related parties as of December 31, 2022, was $834,932.
For a prospective franchisee, this information is relevant because it provides insight into Fitstop's financial relationships and obligations. A significant balance due to related parties could indicate reliance on these parties for funding or other resources. It is important to investigate the nature of these related-party transactions to understand their potential impact on Fitstop's financial stability and operations. A potential franchisee should seek clarification from Fitstop regarding the specifics of these related party transactions.