What was the amount due from a related party to Mr. Sandless in 2022?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
rect services, as deferred revenues, to be recognized over the life of the franchise agreement. The non-refundable franchise fees received but not yet earned as of December 31, 2023, and 2022, were $435,000 and $360,810, respectively.
**5.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the balance due from a related party to Mr. Sandless was $82,500 as of December 31, 2022. These advances are funds that Mr. Sandless periodically advances to its members or related companies. The advances are due on demand and do not bear interest.
This indicates that Mr. Sandless engages in financial transactions with related parties, which could include its members or affiliated companies. The fact that these advances are due on demand and bear no interest suggests a flexible but potentially informal lending arrangement.
A prospective franchisee should further investigate the nature of these related party transactions to understand their potential impact on Mr. Sandless's financial stability and operational practices. Understanding the purpose and repayment history of these advances can provide a clearer picture of the company's financial management and its relationships with affiliated entities.