What was the cash and cash equivalents at the beginning of the year for Beauty Bungalows in 2024?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
BALANCE, DECEMBER 31, 2024 | $ (209,773) |
Beauty Bungalows Franchising, LLC STATEMENTS OF CASH FLOWS For the years ended December 31, 2024 and 2023
| 2024 | 2023 | |||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | _ | _ | ||
| Net loss | $ | (243,301) | $ | (85,311) |
| Change in: | _ | |||
| Deferred revenue | 442,600 | 214,600 | ||
| Credit card | 13,933 | - | ||
| Deferred acquisition costs | (196,874) | (115,783) | ||
| Net cash provided by operating activities | 16,358 | 13,506 | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Member contributions | 16,618 | 37,988 | ||
| Member distribtuions | - | (60,000) | ||
| Net cash provided by (used in) financing activities | 16,618 | (22,012) | ||
| Net change in cash and cash equivalents | $ | 32,976 ŕ | $ | (8,506) , , |
| Cash and cash equivalents at beginning of year | 115,727 | 124,233 | ||
| cush und cush equivalents at segimining of your | 113,727 | 12 1,233 | ||
| Cash and cash equivalents at end of year | $ | 1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the cash and cash equivalents at the beginning of 2024 was $115,727. This figure represents the amount of liquid assets Beauty Bungalows had available at the start of the year to fund its operations and investments.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests that Beauty Bungalows has sufficient resources to support its franchisees, invest in growth initiatives, and weather potential economic downturns. It demonstrates financial stability and the ability to meet its obligations.
However, it's important to consider this figure in the context of Beauty Bungalows' overall financial performance. While a starting cash balance of $115,727 for 2024 seems positive, franchisees should also review the statements of cash flow, operations, and member's equity to assess how efficiently Beauty Bungalows manages its cash and whether it is generating sufficient profits. Reviewing these statements will provide a more complete picture of the franchisor's financial health and sustainability.
The FDD also includes financial statements from prior years, allowing potential franchisees to analyze trends in Beauty Bungalows' cash position and overall financial performance. Comparing the cash balance at the beginning of 2024 to previous years can reveal whether the company's financial health is improving, declining, or remaining stable. This historical perspective can help franchisees make a more informed decision about investing in the franchise.