What was the cash and restricted cash balance for Bath Tune Up at the beginning of the year 2022?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
mber 31, 2024 | $ 13,383,394 | $ (9,281,090) $ | 4,102,304 |
HFC KTU LLC (dba Kitchen Tune-Up and Bath Tune-Up) Statements of Cash Flows
| For the Years Ended | ||||
|---|---|---|---|---|
| December 31, 2024 | December 31, 2023 | |||
| Cash flows from operating activities: | ||||
| Net income | $ | 1,588,884 | $ | 2,271,476 |
| Adjustments to reconcile Net income to Net cash provided by | ||||
| operating activities | ||||
| Depreciation | 277,279 | 211,930 | ||
| Amortization of operating right-of-use lease assets | 55,233 | 53,752 | ||
| Provision for credit losses | 894,504 | 630,961 | ||
| Loss on disposal of assets | — | 3,651 | ||
| Foreign exchange (gain) loss | 15,613 | (9,062) | ||
| Decrease (increase) in assets: | ||||
| Accounts receivable | (254,306) | (272,177) | ||
| Notes receivable | (224,976) | (460,630) | ||
| Rebates receivable | 73,413 | 129,675 | ||
| Prepaid expenses | 5,025 | 109,994 | ||
| Other current assets | 11,379 | 10,096 | ||
| Other assets | (4,000) | — | ||
| Increase (decrease) in liabilities: | ||||
| Accounts payable | 312,705 | (155,708) | ||
| Accrued liabilities | (39,319) | 33,690 | ||
| Operating lease liability | (57,206) | (59,809) | ||
| Advertising advances and deposits | (146,679) | (196,847) | ||
| Deferred revenue | 27,529 | (513,538) | ||
| Net cash provided by operating activities | 2,535,078 | 1,787,454 | ||
| Cash flows from investing activities: | ||||
| Purchase of property and equipment | (174,417) | (214,252) | ||
| Net cash used in investing activities | (174,417) | (214,252) | ||
| Cash flows from financing activities: | ||||
| Advances to Parent | (5,616,409) | (5,067,710) | ||
| Allocations from Parent | 3,716,061 | 3,671,090 | ||
| Net cash used in financing activities | (1,900,348) | (1,396,620) | ||
| Net increase in cash | 460,313 | 176,582 | ||
| Cash at beginning of period | 1,838,918 | 1,662,336 | ||
| Cash at end of period | $ | 2,299,231 | $ | 1,838,918 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the cash and restricted cash balance at the beginning of the year 2022 was $1,466,547. This figure represents the total amount of readily available funds Bath Tune Up had at its disposal to start the fiscal year. This includes both unrestricted cash, which can be used for any business purpose, and restricted cash, which is typically earmarked for specific uses such as advertising.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance indicates financial stability and the ability to support franchisees. It suggests that Bath Tune Up has sufficient resources to invest in ongoing development, marketing, and support programs, which can directly benefit franchisees.
However, it is important to note that this figure is just a snapshot in time. Franchisees should also review Bath Tune Up's cash flow statements to understand how the company generates and uses cash over a longer period. Analyzing trends in cash flow can provide a more comprehensive picture of the franchisor's financial health and its ability to sustain long-term growth. Additionally, prospective franchisees may want to inquire about how Bath Tune Up manages its restricted cash and ensures that it is used effectively to support the franchise system.