What was the net cash provided by operating activities 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 net cash provided by operating activities as of December 29, 2024, was $25,598,491. This indicates the amount of cash 7 Brew generated from its core business operations during that year. This figure is significantly higher than the previous years, with $11,888,078 in 2023 and $8,055,570 in 2022. This shows a positive trend in 7 Brew's ability to generate cash from its operations.
Operating activities include the revenues and expenses incurred from the normal day-to-day running of the business. For 7 Brew, this primarily involves the collection of royalties and other service fees from franchisees. The net cash from operating activities reflects how efficiently 7 Brew manages its cash flow in relation to these core revenue streams.
A prospective franchisee should view this as a positive indicator of the financial health and stability of 7 Brew. Strong cash flow from operations suggests that the business model is sustainable and capable of generating profits. However, it is important to consider this figure in conjunction with other financial metrics and qualitative factors, such as market trends and the competitive landscape, to gain a comprehensive understanding of the franchise opportunity.