What was the cash balance at the end of the period for Apricot Lane in 2024?
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 end of the period in 2024 was $85,129. This figure represents the total amount of cash and cash equivalents the company had on hand as of December 31, 2024. Cash equivalents are defined by Apricot Lane as short-term investments that can be easily converted into cash within three months or less. This indicates the company's liquidity position at the close of the fiscal year.
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 ongoing development, marketing, and support programs. Conversely, a low cash balance might raise concerns about the franchisor's ability to meet its obligations and provide adequate support to its franchisees.
It's also useful to compare the cash balance from year to year. In this case, the cash balance decreased from $186,678 at the beginning of the period to $85,129 at the end of 2024. This decrease could be due to various factors, such as investments in the business, increased operating expenses, or distributions to owners. A prospective franchisee may want to inquire about the reasons for this decrease to fully understand the company's financial performance and future plans.