What was the beginning cash balance for Angry Chickz at the start of 2023?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| \$ (8,336) | \$ (19,329) |
Angry Chickz Franchising, LLC
Statements of Cash Flows
December 31, 2024 and Period from June 9, 2023 (inception) to December 31, 2023
| 2024 | 2023 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | $ (436,260) | $ (219,329) |
| Net loss | ||
| Adjustments to reconcile net loss to net cash | ||
| from operating activities: | ||
| Amortization | 750 | - |
| Net change in assets and liabilities Receivables and other current assets Contract assets Accounts payable and accrued expenses Contract liability Due to Member | (8,507) (60,000) (24,850) 396,250 ,129 | - - 46,753 - 72,576 |
| Net cash provided by (used in) operating activities | 54,512 | (100,000) |
| CASH FLOWS FROM INVESTMENT ACTIVITIES | (4,421) | - |
| Purchases of property and equipment | ||
| CASH FLOWS FROM FINANCING ACTIVITIES Distribution to Member Contribution from Member | (42,747) - | - 200,000 |
| Net cash (used in) provided b |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the beginning cash balance at the start of 2023 was zero. The document's Statement of Cash Flows details the cash flow activities for the year 2024 and the period from June 9, 2023 (inception) to December 31, 2023. The cash at the beginning of the year is listed as $-, indicating that Angry Chickz started with no cash on hand at its inception.
This is not unusual for a newly formed company, as Angry Chickz Franchising, LLC was formed on June 9, 2023. The company relied on resources from its member, Angry Chickz, Inc., to support initial operations. This means that the parent company provided the initial capital and resources needed to start the franchise operations.
For a prospective franchisee, this information highlights the importance of understanding the financial stability and backing of a new franchise system. While a zero beginning cash balance isn't inherently negative, it emphasizes that Angry Chickz was dependent on its member for financial support during its early stages. A franchisee should inquire about the continued financial commitment of the parent company and the plans for achieving independent financial stability for the franchising entity.