What was the amount due from related party for Lees Famous Recipe as of December 31, 2023?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
six months of service are eligible to participate. Eligible employees may defer up to the maximum amount allowed by the Internal Revenue Service. The Company may make matching and discretionary contributions to the plan. For the years ended December 31, 2023 and 2022, and for the period ended December 31, 2021, employer contributions to the plan totaled $180,337, $95,233, and $31,307 respectively.
NOTE 9 - RELATED PARTY TRANSACTIONS
During the years ended December 31, 2023 and 2022, and for the period ended December 31, 2021, the Company realized revenue from Lee's Famous Recipe Advertising Cooperative, Inc. for administrative services provided by LFR Chicken totaling $360,000, $309,165, and $102,890 respectively. The Company had accounts payable due to Lee's Famous Recipe Advertising
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the company had accounts payable due to Lee's Famous Recipe Advertising Cooperative, Inc. of $31,022 as of December 31, 2023. Additionally, the company had accounts payable due to LFRC OH Adverting Cooperative, Inc. of $9,364 at the same date. These payables stem from related party transactions between Lees Famous Recipe and its advertising cooperatives.
These figures reflect the amounts Lees Famous Recipe owed to its advertising cooperatives for services or other transactions between the entities. It is important to note that these are accounts payable, meaning they represent short-term liabilities that Lees Famous Recipe was obligated to pay to these related parties.
A prospective franchisee should be aware of these related party transactions, as they can impact the financial performance and stability of the company. Understanding the nature and extent of these transactions is crucial for assessing the overall financial health of Lees Famous Recipe. It is also important to investigate the services provided by the advertising cooperatives and their impact on the franchise system.