What was the net cash used in operating activities for Angry Chickz in 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 net cash used in operating activities for the period from June 9, 2023 (inception) to December 31, 2023, was $(100,000). This indicates that Angry Chickz spent $100,000 more than it generated from its core business operations during that initial period.
This figure reflects the cash outflow related to the company's startup phase. The statement of cash flows provides a summary of the cash inflows and outflows during a specific period. For a new franchise system like Angry Chickz, initial cash usage is typical as the company invests in establishing its infrastructure, developing its franchise program, and supporting its first franchisees.
Prospective franchisees should consider this information in the context of the overall financial health and stability of Angry Chickz. While initial cash usage is not uncommon, it's important to assess how the company plans to achieve positive cash flow from operations in the future. Understanding the strategies for revenue generation, cost management, and franchisee support will be crucial in evaluating the long-term viability of the franchise opportunity.