What was the amount of capital contributions for Afuri Ramen Dumpling in 2020?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| ACCUMULATED DEFICIT, end of year | $ | (14,524) | $ | (29,243) |
| 2021 2020 | 2020 | |||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATIONS | 7.7 | 100000 | ||
| Net income (loss) | $ | 14,719 | $ | (14,076) |
| Adjustments to reconcile net loss to net cash flows | ||||
| provided by operating activities | ||||
| Depreciation | 1,506 | 376 | ||
| Capital contributions | 98,000 | |||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | (26,442) | 631 | ||
| Prepaid expenses | 5,236 |
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the company had capital contributions of $98,000 in 2020. This figure is part of the cash flow statement, which reconciles net income to net cash flows.
Capital contributions typically represent funds invested into the company by its owners or shareholders. For prospective franchisees, this indicates the level of financial backing the company has received, which can be a measure of its financial health and stability. A higher capital contribution can enable the franchisor to invest in systems, training, and support for its franchisees.
However, it is important to note that this figure is just one element of the company's overall financial picture. Franchisees should review the complete financial statements and consult with a financial advisor to fully understand the implications of the capital contributions and other financial metrics.