What was the net cash used by investing 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 |
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 investing activities in 2024 was $(62,579). This figure represents the total cash outflow related to investments made by B Bops during that year. These investments include $0 in Investment in Note Receivable - Related Party and ($62,579) in Investment in Note Receivable - Shareholder.
For a prospective franchisee, understanding the investing activities of the franchisor can provide insights into how B Bops manages its capital and allocates resources. A negative value, such as the $(62,579) reported for 2024, indicates that B Bops used more cash for investments than it generated from them. This could be due to various factors, such as loans to shareholders.
It's important to note that investing activities are distinct from operating and financing activities. Investing activities typically involve the purchase and sale of long-term assets, such as property, plant, and equipment, as well as investments in securities. In this case, the investments are related to notes receivable from related parties and shareholders. A franchisee should consider these figures in the context of B Bops's overall financial health and strategy.
Prospective franchisees might want to inquire about the nature of these investments, the terms of the notes receivable, and the expected return on these investments to better assess the financial decisions made by B Bops.