What was the change in accounts payable for Lees Famous Recipe in 2023?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
31, 2023 or 2022, respectively.
There was no revenue realized from LFRC OH Adverting Cooperative, Inc. during the years ended December 31, 2023 and 2022, and for the period ended December 31, 2021. The Company had accounts payable due to LFRC OH Adverting Cooperative, Inc. of $9,364 at December 31, 2023. No amounts were due to LFRC OH Advertising Cooperative, Inc. as of December 31, 2022.
NOTE 9 - RELATED PARTY TRANSACTIONS (Continued)
During the years ended December 31, 2023 and 2022, the Company paid Lee's Famous Recipe Advertising Cooperative, Inc. and LFRC OH Adverting Cooperative, Inc. $626,167 and $393,235, respectively. No amounts were paid to the related parties in the period ended December 31, 2021.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 FDD, Lees Famous Recipe had accounts payable due to Lee's Famous Recipe Advertising Cooperative, Inc. of $31,022 at the end of 2023. In 2023, Lees Famous Recipe also had accounts payable due to LFRC OH Adverting Cooperative, Inc. of $9,364. To determine the total change in accounts payable for Lees Famous Recipe in 2023, further information regarding accounts payable at the beginning of the year (2022) would be needed.
Without the beginning accounts payable balance, it's impossible to calculate the net change during 2023. A prospective franchisee should request a complete balance sheet or income statement from Lees Famous Recipe to fully understand the company's financial performance and changes in liabilities like accounts payable over time. This information is crucial for assessing the financial health and stability of the franchise system.
Understanding the fluctuations in accounts payable can provide insights into Lees Famous Recipe's payment practices with its suppliers and related entities. A significant increase in accounts payable might indicate that the company is taking longer to pay its bills, which could be a sign of financial strain, while a decrease might suggest improved cash flow management. Therefore, obtaining a comprehensive view of the company's accounts payable trends is essential for making an informed investment decision.