What was the amount of distributions related to cash flows from financing activities for Beggars Pizza in 2022?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company records royalty revenue based on 5 percent of gross sales or $500 per month, whichever is higher, over time. Royalty revenue for the years ended December 31, 2023 and 2022, was $1,561,237 and $1,475,563, respectively.
First, 100 percent to Class A members' pro rata until the cumulative distributions received by the members equals $4,176,000.
Second, 100 percent to the Class B and C members in proportion to their vested percentage until the cumulative distributions received by such members equals $2,435,999.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the specific amount of distributions related to cash flows from financing activities for Beggars Pizza in 2022 is not explicitly detailed. The provided financial statements include statements of cash flows, but these do not break down the distributions in the manner requested. Instead, the FDD provides details on overall cash flow activities, royalty revenues, and member equity.
Specifically, the FDD includes information on royalty revenue, which was $1,475,563 for the year ended December 31, 2022. It also describes the distribution provisions related to members' equity, outlining how distributions are allocated among Class A, Class B, and Class C members. The document mentions that 100 percent of distributions go to Class A members pro rata until they cumulatively receive $4,176,000, and then to Class B and C members until they receive $2,435,999.
For a prospective franchisee, this means that while the FDD offers a detailed look at revenue recognition, royalty fees, and overall cash management, it does not offer a specific figure for distributions from financing activities. A potential franchisee should directly ask Beggars Pizza for a detailed breakdown of their cash flows from financing activities to fully understand the company's financial practices and stability.