What was the net cash provided by operating activities for Bb.Q Chicken in 2024?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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Consolidated Statements of Cash Flow December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net Income (loss) | $ (51,129) | $ 107,888 |
| Adjustment to reconcile net income (loss) to net cash | ||
| used in operating activities: | ||
| Depreciation & amortization | 402,980 | 368,402 |
| Bad debt expenses | 42,846 | 9,370 |
| Provision for inventory reserves | 12,320 | 12,350 |
| Increase/Decrease in accounts receivable | (2,108,010) | (2,266,137) |
| Increase/Decrease in due from parent | (2,016,520) | - |
| Increase/Decrease in inventory | 1,065,214 | (1,582,637) |
| Increase/Decrease in prepaid expenses | (171,458) | 91,641 |
| Increase/Decrease in interest receivable | (11,878) | (12,530) |
| Increase/Decrease in contract asset | (140,000) | - |
| Increase/Decrease in deferred tax asset | 56,705 | (97,335) |
| Increase/Decrease in accounts payable | 1,792,542 | 1,496,963 |
| Increase/Decrease in accrued expenses | 50,353 | 9,721 |
| Increase/Decrease in taxes payable | (9,627) | 14,290 |
| Increase/Decrease in royalty payable | 2,780,651 | (1,593,686) |
| Increase/Decrease in interest payable | 92,252 | 92,000 |
| Increase/Decrease in unearned revenue | (103,250) | (134,250) |
| Increase/Decrease in other current liabilities | 20,965 | (33,994) |
| Increase/Decrease in due to parent | - | 5,174,292 |
| Increase/Decrease in right of assets | 548,639 | (5,128,467) |
| Net |
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 2024 was $2,253,594. This indicates the amount of cash Bb.Q Chicken generated from its core business operations during that year. In comparison, the net cash used in operating activities in 2023 was $(3,472,119).
Operating activities include the primary revenue-generating activities of the company, such as sales from franchise operations. The net cash provided by these activities is a key indicator of the company's financial health and its ability to fund its ongoing operations and future growth.
A prospective franchisee should consider this information in the context of Bb.Q Chicken's overall financial performance and trends. Understanding the factors that contribute to these cash flows can help a franchisee assess the stability and potential of the franchise system.