What was the amount of proceeds from related party payables for Mrcool?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| CASH FLOWS FROM OPERATING ACTIVITIES | $ (18,602) | $ | (5,025) |
|---|---|---|---|
| Net loss | |||
| Adjustments to reconcile net loss to net cash | |||
| used by operating activities: | |||
| Changes in assets and liabilities: | |||
| Increase in assets: | |||
| Prepaid expenses | (1,080) | -0- | |
| Increase in liabilities: | |||
| Provision for LLET tax | 175 | -0- | |
| Net cash used by operating activities | (19,507) | (5,025) | |
| CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from related party payables Payments on related party payables Net cash provided by financing activities | 25,648 (5,294) 20,354 | 5,025 -0- 5,025 |
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the proceeds from related party payables for the year 2024 was $25,648. Payments on related party payables totaled $5,294. Net cash provided by financing activities was $20,354.
For 2023, the proceeds from related party payables was $5,025. Payments on related party payables was $0. Net cash provided by financing activities was $5,025.
Related party transactions can be a common occurrence, especially in newer franchise systems. It is important for a prospective franchisee to understand the nature and extent of these transactions, as they can impact the financial stability and operations of the franchise. A franchisee should seek clarification from Mrcool regarding the related party transactions to fully understand their implications.