What was the net cash provided by operating activities for Alloy in 2021?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Depreciation and amortization | 14,055 | 4,541 | - | ||
|---|---|---|---|---|---|
| Non-cash lease expense | 94,354 | 94,354 | - | ||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | (97,653) | 122,149 | (82,465) | ||
| Prepaid commissions | (2,396,377) | (3,488,475) | (1,470,152) | ||
| Prepaid expenses and other current assets | (5,015) | 9,965 | (9,965) | ||
| Accounts payable | 94,066 | (152,453) | 155,578 | ||
| Accrued expenses and other current | |||||
| liabilities | (121,965) | 109,312 | - | ||
| Deferred revenues | 2,480,696 | 4,776,209 | 2,372,421 | ||
| Brand fund payable | 218,292 | 122,302 | 62,750 | ||
| Operating lease liabilities | (87,096) | (87,096) | - | ||
| Net cash provided by operating activities | 129,822 | 816,282 | 455,647 | ||
| Cash flows from investing activity: | |||||
| Purchases of property and equipment | (39,517) | (41,481) | - | ||
| Cash flows from financing activities: | |||||
| Contributions from member | - | 8,921 | 465,992 | ||
| Distributions from member | (268,517) | (382,804) | (523,964) | ||
| Net cash used in financing activities | (268,517) | (373,883) | (57,972) | ||
| Net increase (decrease) in cash | (178,212) | 400,918 | 397,675 | ||
| Cash - beginning | 948,533 | 547,615 | 149,940 | ||
| CASH - ENDING | $770,321 | $948,533 | $547,615 | ||
| Supplemental schedules for non-cash transaction: | |||||
| --- | --- | --- | --- | --- | --- |
| Operating lease liability and right-of-use assets | |||||
| recognized on January 1, 2023 | $ | - | $782,230 | $ | - |
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $455,647. In 2023, the net cash provided by operating activities was $816,282. For 2024, the net cash provided by operating activities was $129,822.
These figures reflect the cash Alloy generated from its core business operations, after accounting for all operating expenses and revenues. Reviewing these figures over the three-year period provides insight into Alloy's financial health and its ability to generate cash through its business activities. A prospective franchisee can use this information to assess the financial stability and performance trends of Alloy.
It's important to note that these figures are specific to Alloy's operations and do not reflect the potential financial performance of an individual franchise. Factors such as location, market conditions, and the franchisee's management skills will significantly impact the financial outcomes of a franchise location. Therefore, while this data offers a glimpse into Alloy's overall financial performance, further due diligence is essential to evaluate the potential profitability of a franchise.