What was the amount due from a related party to Mr. Sandless in 2023?
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. RELATED PARTY TRANSACTIONS
The Company periodically advances funds to its members' or related companies. These advances are due on demand and bear no interest. As of December 31, 2023, and 2022, the balance due from a related party was $
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, as of December 31, 2023, the balance due from a related party to Mr. Sandless was $64,122. 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 type of related party transaction is not uncommon in franchise systems, especially smaller ones. It is important to note that these transactions can create potential conflicts of interest. A prospective franchisee should understand the nature of these related party transactions and how they might impact the financial stability and operations of Mr. Sandless.
It is also important to note that the amount due to a related party from Mr. Sandless as of December 31, 2023 was $0. This means that while Mr. Sandless had advanced funds to related parties, no related parties had advanced funds to Mr. Sandless at that time.