What was the cash balance at the end of the year for franchised Beggars Pizza restaurants?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Cash flows from operating activities: | ||
|---|---|---|
| Net income | $ 800,280 Changes in operating assets and liabilities: | $ 705,221 |
| Royalty receivables | (5,455) | |
| Prepaid Expenses | (85,551) | |
| Accounts payable | 25,825 | |
| Accrued state taxes | (34,979) | |
| Deferred franchise fees | 12,500 | |
| Net cash flows from operating activities | 687,620 | |
| Cash flows from financing activities - distributions | (638,217) | (736,087) |
| Net change in cash | 49,403 | |
| Cash - beginning of the year | 174,543 | 198,397 |
| Cash - end of the year | $ 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 cash balance at the end of the year was $223,946. This figure represents the culmination of cash flows from operating activities, financing activities, and the initial cash balance at the beginning of the year. The net change in cash during the year was $49,403, which, when added to the beginning-of-year cash balance of $174,543, results in the end-of-year cash balance.
Understanding the cash flow statement is crucial for prospective Beggars Pizza franchisees. It provides insights into how the business generates and uses cash, which is essential for managing day-to-day operations and planning for future investments. The cash flow from operating activities reflects the cash generated from the core business activities, while cash flow from financing activities shows how the business is funded through debt and equity.
For a potential franchisee, this information is valuable in assessing the financial health and stability of a Beggars Pizza franchise. A healthy cash balance indicates that the business is generating sufficient cash to cover its expenses and potentially invest in growth opportunities. However, it's important to analyze the components of the cash flow statement to understand the underlying drivers of cash flow and identify any potential risks or opportunities. Reviewing these figures over multiple years can provide a more comprehensive understanding of the franchise's financial performance and trends.
It is important to note that this cash balance represents the franchised Beggars Pizza restaurants overall and not the performance of a specific location. Prospective franchisees should conduct their own due diligence and consult with financial advisors to assess the financial viability of a specific franchise location.