As of December 31, 2022, what was the balance due to related parties from Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ES TO THE FINANCIAL STATEMENTS
5. BRAND FUND
The Company maintains a brand fund established to collect and administer funds contributed for use in advertising and promotional programs for franchise units. Advertising fees are collected from franchisees based on a percentage of franchisee gross revenues. Brand fund liability for the years ending December 31, 2024, 2023 and 2022 were $0 and $0 and $80,280 respectively.
6. PRIOR YEAR ADJUSTMENT
A restatement to the year ended December 31, 2022, financ
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, as of December 31, 2022, the balance due to related parties was $76,268. These advances are due upon demand and do not bear interest. Balances due to related parties were $0 as of December 31, 2024, and 2023.
It is also important to note that Spray Net periodically advances funds to its members or related companies. These advances are also due upon demand and do not bear interest. As of December 31, 2022, the balances due from related parties were $0. The balances due from related parties were $69,911 and $121,956 as of December 31, 2024, and 2023, respectively.
Related party transactions are common in franchise systems. It is important for a prospective franchisee to understand the nature and extent of these transactions, as they can impact the financial health of the company. Franchisees should seek clarification from Spray Net regarding the purpose and terms of these related party transactions to fully understand their implications.