What was the net cash provided by operating activities for Bb.Q Chicken in 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 | (33,9 |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $1,656,348. This indicates the amount of cash Bb.Q Chicken generated from its core business operations during that year. This figure is an important indicator of the company's financial health and its ability to fund future growth and investments.
For a prospective franchisee, understanding the net cash provided by operating activities can offer insights into the stability and efficiency of Bb.Q Chicken's business model. A positive and growing number suggests that the company is effectively managing its resources and generating sufficient cash flow to cover its operational expenses. This can be reassuring for franchisees who are considering investing in the brand.
It's also useful to compare this figure with previous years and with other franchises in the same industry to assess Bb.Q Chicken's relative performance. In 2022, the net cash provided by operating activities was $625,695, which is significantly lower than the 2023 figure. This increase could be due to various factors, such as increased sales, improved cost management, or changes in working capital. A prospective franchisee should investigate the reasons behind this increase to determine if it is sustainable.
Overall, the net cash provided by operating activities is a key metric to consider when evaluating a franchise opportunity. It provides a snapshot of the company's financial performance and its ability to generate cash from its core business operations. While a single year's figure is informative, it's important to analyze trends over multiple years to gain a more comprehensive understanding of the company's financial health.