What was the investment in note receivable - related party for B Bops in 2022?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
2021
| 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|
| Cash Flows from Operating Activities | ||||
| Cash Provided by Operating Activities Operating Revenue Interest Accrued Reconciliation of Net Income to Net Cash | $ 171,308 | $ 153,244 | $ 168,937 | $ 155,330 |
| 20,000 | 9,599 | 3,144 | 3,506 | |
| Provided by Operating Activities: Franchise Fee Receivable Accounts Payable | $ (30,422) | $ (1,732) | $ 203 | $ (2,318) |
| 7,596 | (487) | 487 | (41,912) | |
| $ 168,482 | $ 160,624 | $ 172,771 | $ 114,606 | |
| Cash Disbursed for Operating Activities: Professional Fees Bank Charges Salaries Payroll Taxes | $ (22,283) | $ (20,398) | $ (20,472) | $ (14,989) |
| (572) | (502) | (504) | (519) | |
| - | - | - | (100,000) | |
| - | - | - | (1,450) | |
| Net Cash Provided (Used) by Operating Activities | $ 145,627 | $ 139,724 | $ 151,795 | $ (2,352) |
| Cash Flows from Investing Activities: | ||||
| Investment in Note Receivable - Related Party | $ - | $ (20,608) | $ 32,380 | $ (3,034) |
| Investment in Note Receivable - Shareholder | (62,579) | (3,222) | (3,144) | |
| Net Cash Provided (Used) by Investing Activities | $ (62,579) | $ (23,830) | $ 29,236 | $ (3,034) |
| Cash Flows from Financing Activities: | ||||
| Shareholder Distributions | $ (7,596) | $ - | $ | $ |
| Net Cash Used by Financing Activities | $ (7,596) | $ | $ | $ |
| Net Increase (Decrease) in Cash and Cash Equivalents | $ 75,452 | $ 115,894 | $ 181,031 | $ (5,386) |
| Cash and Cash Equivalents at Beginning of Year | $ 467,403 | $ 351,509 | $ 170,478 | $ 175,864 |
| Cash and Cash Equivalents at End of Year | $ 542,855 | $ 467,403 | $ 351,509 | $ 170 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the investment in note receivable from a related party in 2022 was $32,380. This figure is part of the cash flow statement, detailing cash flow from investing activities. It indicates the amount of cash B Bops used for a note receivable related to a party connected to the company.
For a prospective franchisee, this information provides insight into B Bops's financial transactions with related parties. A 'related party' usually refers to the company's owners, executives, or their family members, or other entities they control. These transactions are not inherently problematic, but they require careful scrutiny to ensure they are conducted at arm's length and are fair to the company.
The presence of related-party transactions suggests that a potential franchisee should investigate the nature and terms of these transactions. Understanding the reasons behind these transactions and their impact on B Bops's financial health is crucial. While the FDD provides the investment amount, it does not detail the specifics of the 'note receivable,' such as the interest rate, repayment terms, and the nature of the relationship with the related party. A potential franchisee should seek clarification from B Bops regarding these aspects to assess any potential risks or benefits.