What were the cash flows from financing activities (distributions) for Beggars Pizza in 2022?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
,221 | 864,598 | | Distributions | (736,087) | (993,346) | | Members' equity - end of year | $ 201,534 | $ 232,400 |
Beggars Pizza Franchise, LLC Statement of Cash Flows For the Year Ended December 31,
| 2022 | 2021 | ||
|---|---|---|---|
| (As Restated) | |||
| Cash flows from operating activities: | $ 705,221 | $ | 864,598 |
| Net income | |||
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Changes in operating assets and liabilities: Royalty receivables Accounts payable Accrued state taxes Deferred franchise fees | (41,084) (73) 35,669 12,500 | 17,713 (6,348) - 25,000 | |
| Net cash flows from operating activities | 712,233 | 900,963 | |
| Cash flows from financing act |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the cash flows from financing activities related to distributions for the year 2022 were ($736,087). This indicates that Beggars Pizza distributed $736,087 to its members during that year. These distributions represent a cash outflow from the company to its owners.
For a prospective franchisee, understanding the franchisor's cash flow from financing activities can provide insights into how the company manages its capital and returns value to its owners. Significant distributions might suggest a healthy financial position, but it's crucial to evaluate this in conjunction with other financial metrics to ensure the company is not over-distributing at the expense of future growth or stability.
It is important to note that distributions are not necessarily indicative of profitability alone. They reflect decisions about how the company allocates its available cash, which could be influenced by factors beyond net income. Therefore, potential franchisees should consider these figures as part of a broader due diligence process, examining the overall financial health and strategic direction of Beggars Pizza.