What was the net cash provided by (used by) operating activities for Apricot Lane in 2024?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ | 24,563 | $ | 90,000 | $ 361,555 | $ | 476,118 |
| 2024 | 2023 | |||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 214,496 | $ | 4,020 |
| Adjustments to reconcile net income to net | ||||
| cash provided by operating activities: | ||||
| Depreciation and amortization | 51,794 | 33,509 | ||
| Gain on disposal of fixed assets | - | 510 | ||
| Realized (gain) loss on investment securities | (1,456) | (9,943) | ||
| (Increase) decrease in: | ||||
| Royalty and advertising fees receivable | 8,691 | 393,580 | ||
| Reimbursable franchise costs and other receivable | 5,941 | (4,612) | ||
| Prepaid expenses | 2,145 | 8,261 | ||
| Security deposit | 103 | - | ||
| Right-of-use lease asset | 8,724 | 20,070 | ||
| Increase (decrease) in: | ||||
| Accounts payable and accrued liabilities | (80,643) | (11,380) | ||
| Income tax payable | - | (14,297) | ||
| Lease liability | (8,724) | (20,070) | ||
| Deferred franchise fee | (311,000) | (543,000) | ||
| Net cas |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the net cash provided by (used by) operating activities in 2024 was a negative value, specifically ($109,929). This means that Apricot Lane used more cash than it generated from its core business operations during that year. In comparison, the net cash provided by (used by) operating activities in 2023 was also negative, at ($143,352).
Operating activities generally include the cash effects of transactions and other events that enter into the determination of net income. A negative cash flow from operating activities could be due to various factors, such as increased expenses, decreased revenues, or changes in working capital accounts like accounts receivable or accounts payable.
Prospective franchisees should consider these figures in the context of Apricot Lane's overall financial performance and investigate the reasons behind the negative cash flow. It would be prudent to ask the franchisor about the specific factors contributing to this and what measures are being taken to improve cash flow from operations.