What was the beginning cash balance for Beggars Pizza at the start of the year?
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 beginning cash balance for the company at the start of one year was $223,946, while the beginning cash balance at the start of the previous year was $174,543. This represents the amount of cash Beggars Pizza had available at the beginning of each respective year to fund its operations and investments.
These figures are important for prospective franchisees as they provide insight into the financial health and stability of Beggars Pizza. A higher beginning cash balance generally indicates a stronger financial position, which can be reassuring for franchisees who are considering investing in the brand. It suggests that the company has sufficient resources to manage its day-to-day operations, invest in growth initiatives, and weather any unexpected economic challenges.
However, it's important to note that the beginning cash balance is just one aspect of a company's overall financial picture. Prospective franchisees should also consider other factors such as revenue, expenses, profitability, and debt levels to get a more comprehensive understanding of Beggars Pizza's financial performance. Additionally, it's advisable to compare these figures to industry benchmarks and the performance of other franchise systems to assess the relative strength of Beggars Pizza's financial position.