What was the 'Cash, End of Period' for 7 Brew as of December 29, 2024?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ber 29, 2024 | $ 17,776,440 |
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| December 29, 2024 | December 31, 2023 | December 25, 2022 | |
|---|---|---|---|
| Operating Activities | $ 18,388,782 | $ 1,560,891 | $ (2,563,076) |
| Net income (loss) | |||
| Adjustments to reconcile net income (loss) to net cash | |||
| provided by operating activities Depreciation and amortization Operating lease asset/liability Loss on disposal of software in development Gift card breakage | 55,238 12,550 693,200 (1,485,646) | 19,643 35,666 - - | 9,407 - - - |
| Changes in Accounts receivable Prepaid expenses and other current assets Accounts payable and accrued expenses Deferred franchise fees | (848,299) (1,600,294) 5,954,321 4,428,639 | (135,935) (176,538) 2,074,593 8,509,758 | (537,588) (43,392) 1,878,039 9,312,180 |
| Net cash provided by operating activities | 25,598,491 | 11,888,078 | 8,055,570 |
| Investing Activities Purchase of property and equipment Advances to Parent Net cash used in investing activities | (941,616) (3,949,623) (4,891,239) | (421,290) (12,999,978) (13,421,268) | (60,581) (13,593,164) (13,653,745) |
| Increase (Decrease) in Cash | 20,707,252 | (1,533,190) | (5,598,175) |
| Cash, Beginning of Period | 2,111,088 | 3,644,278 | 9,242,453 |
| Cash, End of Period | $ 22,818,340 | $ 2,111,088 | $ 3,644,278 |
| Supplemental Non-Cash Activities Right-of-use asset obtained in exchange for new operating lease liability Accounts payable and accrued expenses relating to purchases of f |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the 'Cash, End of Period' as of December 29, 2024, was $22,818,340. This figure represents the total amount of cash that 7 Brew had on hand at the close of business on that date. This number is an important indicator of the company's financial health and liquidity.
For a prospective franchisee, a strong cash position for the franchisor can be reassuring. It suggests that 7 Brew has sufficient funds to support its operations, invest in growth, and potentially provide support to franchisees if needed. A healthy cash balance can also indicate effective financial management and profitability.
In comparison, the 'Cash, End of Period' for the previous years was $2,111,088 on December 31, 2023, and $3,644,278 on December 25, 2022. The significant increase in cash from 2023 to 2024 suggests substantial growth or a major financial event during that period. A potential franchisee might want to inquire about the reasons for this increase to fully understand the company's financial dynamics.
It is important to note that while a strong cash position is generally positive, it should be evaluated in conjunction with other financial metrics and information about 7 Brew's overall financial performance and strategic plans. A prospective franchisee should review the complete financial statements and consult with a financial advisor to gain a comprehensive understanding of the franchisor's financial condition.