What was the beginning cash balance for Bb.Q Chicken at the start of 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
AINED DEFICIT - ending | (3,554,585) | (3,662,473) |
Consolidated Statements of Cash Flow December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net Income (loss) | $ 107,888 | $ 94,548 |
| Adjustment to reconcile net income (loss) to net cash | ||
| used in operating activities: | ||
| Depreciation & amortization | 368,402 | 233,324 |
| Increase/Decrease in accounts receivable | (2,256,767) | (328,765) |
| Increase/Decrease in inventories | (1,570,287) | (2,776,492) |
| Increase/Decrease in prepaid expenses | 91,641 | 383,504 |
| Increase/Decrease in interest receivable | (12,530) | (4,020) |
| Increase/Decrease in due to parent | 5,174,292 | - |
| Increase/Decrease in deferred tax asset | (97,335) | (132,543) |
| Increase/Decrease in accounts payable | 1,496,963 | 2,442,936 |
| Increase/Decrease in accrued expenses | 9,721 | (95,548) |
| Increase/Decrease in taxes payable | 14,290 | 32,350 |
| Increase/Decrease in royalty payable | (1,593,686) | 428,569 |
| Increase/Decrease in interest payable | 92,000 | 92,000 |
| Increase/Decrease in other current liabilities | (33,994) | 89,582 |
| Increase/Decrease in unearned revenue | (134,250) | 166,250 |
| Net cash provided by operating activities | 1,656,348 | 625,695 |
| Cash flows from investing activities: | ||
| Acquisition of new fixed assets | (611,641) | (1,169,150) |
| Acquisition of intangible asset | (9,350) | (38,251) |
| Increase/Decrease in investment | - | (1,600,000) |
| Increase/Decrease in loans to franchises | (230,916) | (185,927) |
| Increase/Decrease in loans to others | (11,103) | 29,483 |
| Increase/Decrease in security deposits | (10,708) | (36,015) |
| Increase/Decrease in right of assets | (5,128,467) | (3,642,797) |
| Net cash used in investing activities | (6,002,185) | (6,642,657) |
| Cash flows from financing activities: | ||
| Bank loan | (59,695) | 473,269 |
| Increase/Decrease in l |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the beginning cash balance at the start of 2023 was $1,449,277. This figure represents the amount of cash Bb.Q Chicken had on hand at the beginning of the 2023 fiscal year, which then underwent changes due to operating, investing, and financing activities throughout the year.
For a prospective franchisee, understanding the franchisor's cash flow and beginning cash balance can provide insights into the financial health and stability of the company. It demonstrates the liquidity Bb.Q Chicken possesses to manage its operations and invest in growth. A healthy beginning cash balance can be a positive indicator, suggesting that the company is not starting the year in a financially strained position.
However, it is important to consider this figure in conjunction with other financial data provided in the FDD, such as cash flow from operations, investing, and financing activities, to get a comprehensive understanding of Bb.Q Chicken's financial performance. Fluctuations in these cash flow activities can significantly impact the ending cash balance and overall financial stability of the company. Therefore, a prospective franchisee should analyze these figures carefully to assess the financial risks and opportunities associated with investing in a Bb.Q Chicken franchise.