What was the amount of Parent Company advances (net) for My Salon Suite in 2022?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
positions is inclusive of penalties and interest of approximately $543,000 and $496,000, respectively.
10. Receivable From Parent Company
The receivable from the parent company is unsecured, bears no interest and is due on demand. The receivables incurred by the parent company are presented as a component of additional paid in capital on the Consolidated Statement of Members Equity for the respective years
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 net advances to the parent company for the year ending December 31, 2022, was $11,618,027. These advances are unsecured, bear no interest, and are due on demand. The receivables incurred by the parent company are presented as a component of additional paid in capital on the Consolidated Statement of Members Equity for the respective years.
This figure represents the financial transactions between My Salon Suite and its parent company. It indicates the amount of money the parent company received from My Salon Suite during that year. Because these advances are unsecured and non-interest bearing, My Salon Suite is essentially providing a loan to its parent company without the typical protections or returns one would expect from a standard lending arrangement.
For a prospective franchisee, this information is relevant because it provides insight into the financial relationship between My Salon Suite and its parent company. While such transactions are not inherently negative, franchisees should be aware of how the parent company manages its finances and how it interacts financially with its subsidiaries like My Salon Suite. Understanding these relationships can help a franchisee assess the overall financial stability and management practices of the broader corporate structure.