What was the cash balance at the beginning of the period for Apricot Lane in 2023?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |||
|---|---|---|---|---|
| Net change in cash | (101,549) | (40,310) | ||
| Cash, beginning of period | 186,678 | 226,988 | ||
| Cash, ending of period | 85,129 | $ | 186,678 |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the cash balance at the beginning of the period in 2023 was $226,988. This figure represents the amount of cash and cash equivalents the company had on hand at the start of the 2023 fiscal year. Cash equivalents are defined by Apricot Lane as short-term investments convertible to cash with an original maturity of three months or less.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees. It can also indicate the company's capacity to invest in system improvements, marketing, and other resources that benefit the entire franchise network.
However, it is important to note that this is just one data point. A franchisee should also consider other factors such as the company's overall financial performance, debt levels, and cash flow trends. Reviewing the complete financial statements and consulting with a financial advisor can provide a more comprehensive understanding of the franchisor's financial health.
It is also worth noting that the cash balances may exceed federally insured limits. As of December 31, 2023 and 2022, Apricot Lane's cash balances exceeded federally insured limits by approximately $0. While this does not necessarily indicate a problem, it is something for a prospective franchisee to be aware of.