What was the net cash used in investing activities for Bb.Q Chicken in 2022?
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 lease liabilities | 4,955,595 | 3,775,961 |
| Net cash provided by financing activities | 4,895,900 | 4,249,230 |
| Net increase(decrease) in cash | 550,063 | (1,767,732) |
| Cash, beginning of year | 1,449,277 | 3,217,009 |
| Cash, end of year | $ 1,999,340 | $ 1,449, |
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 used in investing activities in 2022 was $(6,642,657). This figure represents the total cash outflow resulting from investments made by Bb.Q Chicken during that year. These investments include the acquisition of new fixed assets, intangible assets, investments, loans to franchisees, loans to others, security deposits, and right of assets.
Specifically, the investments made by Bb.Q Chicken in 2022 included $(1,169,150) in acquisition of new fixed assets, $(38,251) in acquisition of intangible assets, $(1,600,000) in investments, $(185,927) in loans to franchisees, $29,483 in loans to others, $(36,015) in security deposits, and $(3,642,797) in right of assets. These activities combined resulted in the total net cash used in investing activities of $(6,642,657).
For a prospective franchisee, this indicates the scale of investments Bb.Q Chicken was making at the corporate level. While these are not direct franchise-level expenses, they reflect the company's overall financial strategy and use of capital. Understanding these figures can provide insight into how Bb.Q Chicken manages its resources and invests in its future growth, which indirectly affects the stability and support available to franchisees.