What was the net cash used by financing activities for B Bops in 2024?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | $ 115,89 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the net cash used by financing activities in 2024 was $(7,596). This figure reflects the cash outflow related to the company's financing activities during that year. In this case, the only financing activity listed is shareholder distributions.
For a prospective franchisee, understanding the cash flow from financing activities provides insight into how B Bops manages its capital structure and shareholder relations. A negative value, such as the $(7,596) reported for 2024, indicates that B Bops used cash for financing activities, specifically for shareholder distributions. This could mean that the company is returning profits to its owners, which might be seen as a positive sign of financial health.
However, it's essential to consider this figure in the context of B Bops's overall financial performance. While shareholder distributions can be a sign of profitability, it's crucial to ensure that the company has sufficient cash reserves for operational needs and future growth. Reviewing the cash flow from operating and investing activities, alongside the balance sheet, will provide a more comprehensive understanding of B Bops's financial stability and its ability to support its franchisees.