What was the amount of Beggars Pizza's prepaid expenses in the later year presented in the table?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Royalty receivables | 5,718 | (5,455) |
|---|---|---|
| Prepaid Expenses | 14,651 | (85,551) |
| Accounts payable | (16,117) | 25,825 |
| Accrued state taxes | ( 690) | (34,979) |
| Deferred franchise fees | (12,500) | |
| Net cash flows from operating activities | 625,222 | 687,620 |
| Cash flows from investing activities: | ||
| Advances to related parties | 395,198 | - |
| Repayments from related parties | (395,198) | - |
| Net cash flows from investing activities | - | - |
| Cash flows from financing activities - distributions | (598,225) | (638,217) |
| Net change in cash | 26,997 | 49,403 |
| Cash - beginning of the year | 223,946 | 174,543 |
| Cash - end of the year | $ 250,943 | $ 223,946 |
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the prepaid expenses for the later year presented in the table was $14,651. The table provides a comparison of financial data between two years, showing the changes in operating assets and liabilities. Prepaid expenses are costs that have been paid in advance but not yet consumed or used.
For a prospective Beggars Pizza franchisee, prepaid expenses could include items like insurance premiums, rent, or supplies paid in advance. The decrease in prepaid expenses from one year to the next could indicate changes in how Beggars Pizza manages these advance payments or shifts in operational needs.
Understanding the fluctuations in these figures can help a franchisee better plan their own financial strategies and anticipate potential costs. It's important to note that this data reflects changes in operating assets and liabilities, which are key components of a company's financial health and cash flow management.