What was the amount of intercompany receivables from Parent for Moes Southwest Grill as of December 29, 2024?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 29, 2024 | December 31, 2023 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 11,594 | $ 22,662 |
| Restricted cash and cash equivalents - securitization | 32,747 | 29,582 |
| Accounts receivable, net of allowance for credit losses of | ||
| $1,748 and $1,143 in 2024 and 2023, respectively | 44,272 | 37,049 |
| Inventories | 1,128 | 978 |
| Prepaid expenses and other current assets | 12,118 | 9,263 |
| Advertising funds assets | 9,927 | 7,643 |
| Intercompany receivables from Parent | 3,277 | 3,277 |
| Total current assets | 115,063 | 110,454 |
Source: Item 23 — Receipts (FDD pages 92–334)
What This Means (2025 FDD)
According to the 2025 FDD, as of December 29, 2024, Moes Southwest Grill had intercompany receivables from its Parent company amounting to $3,277. This represents the amount owed to Moes Southwest Grill by its Parent. For comparison, the FDD also indicates that the intercompany receivables from Parent were the same amount, $3,277, as of December 31, 2023.
Intercompany receivables typically arise from transactions between related entities within the same corporate structure, such as loans, services rendered, or shared expenses. The fact that the intercompany receivables remained constant year-over-year could suggest a consistent financial relationship between Moes Southwest Grill and its Parent.
Prospective franchisees should understand the nature of these intercompany transactions and how they might affect the financial performance and stability of Moes Southwest Grill. While the amount appears relatively small compared to the total assets, it's important to inquire about the terms of these receivables, including repayment schedules and any associated interest. Understanding these related-party transactions can provide a clearer picture of the overall financial health of the franchise system.