What was the amount of cash used by Bambu in investing activities in 2023?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| FOR THE YEARS ENDED DECEMBER 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| CASH FLOWS FROM OPERAT | ING ACTIVITIES | |||
| Net income (loss) | $ (227,049) | $ (129,336) | $ (331,259) | |
| Adjustments to reconcile net income to net | ||||
| cash provided by operating activities: | ||||
| Depreciation and amortization | ||||
| 66,672 | 66,672 | 66,834 | ||
| Recognition of non-refundable deferred franchise fees | (638,212) | (585,108) | (987,096) | |
| Expenses paid by related party | 581,597 | |||
| Change in assets and liabilities: | ||||
| Accounts receivable | 67,189 | 121,541 | (412,935) | |
| Inventory | 1,233 | (11,141) | (23,389) | |
| Prepaid expenses and other assets | 10,671 | (8,646) | (11,365) | |
| Accounts payable and accrued expenses | 209,179 | 89,087 | 183,020 | |
| Non-refundable deferred franchise fees | 345,500 | 362,500 | 898,017 | |
| Net cash (used) by operating activities | (164,817) | (94,431) | (36,576) | |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Purchase of intangible assets | (2,331) | (3,707) | (5,375) |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the amount of cash used for investing activities in 2023 was $3,707. This figure represents the purchase of intangible assets during that year. This information is derived from the statement of cash flows, which provides a summary of the cash inflows and outflows of Bambu during the specified period. The statement categorizes these cash flows into operating, investing, and financing activities. For prospective franchisees, understanding these cash flow dynamics can offer insights into how Bambu manages its financial resources and invests in its future growth.
Specifically, the investing activities section details how Bambu uses cash for investments in assets that are expected to generate future income or benefits. In this case, the purchase of intangible assets suggests that Bambu is investing in items such as trademarks, patents, or other intellectual property that are essential to its brand and operations. These investments can contribute to the long-term value and competitiveness of the franchise system.
It is important for potential franchisees to consider these figures in the context of Bambu's overall financial performance and strategic objectives. While the purchase of intangible assets may seem like a relatively small amount, it reflects a commitment to protecting and enhancing the brand's intellectual property. Reviewing these trends over several years, as presented in the FDD, can provide a more comprehensive understanding of Bambu's investment strategy and its potential impact on the franchise system.