What was the amount due to/from affiliate for My Salon Suite in 2022?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | | | | | | 31, | | | | | | | | 2023 | | | | | | |
Consolidated Statements of Cash Flows
| For the years ended December 31, | 2023 | 2022 |
|---|---|---|
| Operating | ||
| activities | ||
| Net income | $ 12,569,087 | $ 17,655,295 |
| Adjustments | ||
| to | ||
| reconcile | ||
| net | ||
| income | ||
| to | ||
| net | ||
| cash | ||
| provided by operating activities: | ||
| Bad | 429,277 | 58,670 |
| debt | ||
| expense | ||
| Depreciation | 4,502,473 | 4,043,757 |
| & | ||
| amortization | ||
| Share-based | 1,144,951 | 955,911 |
| compensation | ||
| expense | ||
| Gain | - | (253,092) |
| on | ||
| sale | ||
| of | ||
| assets | ||
| Capital | 323,146 | - |
| Asset | ||
| Impairment | ||
| Deferred | 182,406 | (526,188) |
| income | ||
| taxes | ||
| Amortization | 4,322,294 | 3,957,006 |
| of | ||
| right-of-use | ||
| asset | ||
| Changes in operating assets and | ||
| liabilities, | ||
| net | ||
| of | ||
| businesses | ||
| acquired: | ||
| Accounts | (715,354) | (1,222,781) |
| and | ||
| notes | ||
| receivable, | ||
| trade | ||
| Amount | (494,880) | 844,519 |
| due | ||
| to/from | ||
| affiliate | ||
| Prepaid | 635,960 | 61,885 |
| expenses | ||
| Other | (817,899) | 410,263 |
| assets | ||
| Income | 3,038,140 | (841,376) |
| taxes | ||
| payable | ||
| Accounts | (353,661) | (236,487) |
| payable | ||
| Accrued | 4,598,741 | 1,499,001 |
| liabilities | ||
| Other | (538,612) | (2,367,045) |
| long-term | ||
| liabilities | ||
| Deferred | (753,097) | 108,492 |
| revenue | ||
| Operating | (3,407,70) | (3,613,275) |
| lease | ||
| obligation | ||
| Net | 24,665,263 | 20,534,555 |
| cash | ||
| provided | ||
| by | ||
| operating | ||
| activities | ||
| Investing | ||
| activities | ||
| Capital | (2,715,270) | (3,563,623) |
| expenditures | ||
| Proceeds | - | 725,000 |
| from | ||
| sale | ||
| of | ||
| assets | ||
| Acquisition | (6,784,799) | - |
| of | ||
| a | ||
| business, | ||
| net | ||
| of | ||
| cash | ||
| acquired | ||
| Net | (9,500,069) | (2,838,623) |
| cash | ||
| used | ||
| in | ||
| investing | ||
| activities | ||
| Financing | ||
| activities | ||
| Payments on finance lease | (36,863) | (53,811 ) |
| Net | (18,947,698) | (11,618,027) |
| advances | ||
| to | ||
| parent | ||
| Net | (18,984,561) | (11,671,838) |
| cash | ||
| used | ||
| in | ||
| financing | ||
| activities | ||
| Net | (3,819,367) | 6,024,094 |
| increase | ||
| (decrease) | ||
| in | ||
| cash | ||
| and | ||
| cash | ||
| equivalents | ||
| Cash | 11,866,419 | 5,842,325 |
| and | ||
| cash | ||
| equivalents | ||
| at | ||
| beginning | ||
| of year | ||
| Cash | $ 8,047,052 | $ 11,866,419 |
| and | ||
| cash | ||
| equivalents | ||
| at | ||
| end | ||
| of | ||
| year |
Consolidated Statements of Cash Flows
| Supplemental disclosure: Cash paid for income taxes | $ 5,028,164 | $ 2,603,475 |
|---|---|---|
| Cash | $ 66,388 | $ 695 |
| received | ||
| for | ||
| interest | ||
| S | ||
| upplemental | ||
| noncash | ||
| disclosures: | ||
| Fixed | $ 704,463 | $ - |
| assets | ||
| purchased | ||
| and | ||
| unpaid, | ||
| included | ||
| in | ||
| accounts payable and accrued liabilities | ||
| Right-of-use | ||
| assets | ||
| recorded | ||
| upon | ||
| adoption | ||
| of | ||
| ASC | ||
| 842 | $ - | $ 42,546,655 |
| Right-of-use | $ - | $ 41,754,431 |
| liabilities | ||
| recorded | ||
| upon | ||
| adoption | ||
| of | ||
| ASC 842 | ||
| Operating | $ 17,621,018 | $ 1,183,320 |
| right-of-use | ||
| assets | ||
| obtained | ||
| in | ||
| exchange | ||
| for right-of-use liabilities | ||
| Non-cash | $ 1,124,755 | $ 4,987,904 |
| impact | ||
| of | ||
| lease | ||
| modifications | ||
| Non-cash | $ 1,113,144 | $ - |
| impact | ||
| of | ||
| net | ||
| favorable | ||
| leases | ||
| acquired | ||
| in a business combination |
Notes to Consolidated Financial Statements
1. Organization and Basis of Presentation
Propelled Brands Franchising, LLC (the "Company"), a Delaware limited liability company, was formed on December 28, 2021 and directly or indirectly wholly owns all of the outstanding stock of FASTSIGNS International, Inc.
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the amount due to/from affiliate in 2022 was $844,519. This figure reflects the net change in amounts owed between My Salon Suite and its affiliates during the 2022 fiscal year. This value is important because it reflects the financial interactions between My Salon Suite and its related entities, which can provide insight into the company's financial structure and relationships.
For a prospective franchisee, understanding these related-party transactions is crucial. It's important to note that the amount due to/from affiliate can fluctuate year to year, as seen by the change to a $(494,880) amount in 2023. These fluctuations can be influenced by various factors, including changes in intercompany services, loans, or other financial arrangements. Franchisees should seek clarification on the nature of these transactions to assess any potential impact on My Salon Suite's financial stability and operational practices.
It is also important to note that the FDD also lists 'Amounts due from affiliates' as an asset. As of December 31, 2022, this was listed as '-'. In 2023, this amount was listed as $486,028. These amounts are separate from the 'amount due to/from affiliate' listed in the operating activities table.
Prospective franchisees should consider these figures in conjunction with other financial statement data and seek professional advice to fully understand the implications of related-party transactions on My Salon Suite's overall financial health. Understanding these relationships can help franchisees make informed decisions about their investment and assess the potential risks and benefits associated with the franchise.