What were the cash flows from financing activities (distributions) for Beggars Pizza in 2024?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| |
Beggars Pizza Franchise, LLC Statement of Cash Flows For the Year Ended December 31,
| 2024 | 2023 | ||
|---|---|---|---|
| Cash flows from operating activities: | $ | 621,660 | $ 800,280 |
| Net income | |||
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Changes in operating assets and liabilities: Royalty receivables Prepaid Expenses Accounts payable Accrued state taxes Deferred franchise fees | 5,718 14,651 (16,117) (690) - | (5,455) (85,551) 25,825 (34,979) (12,500) | |
| Net cash flows from operating activities | 625,222 | 687,620 | |
| Cash flows from investing activities: Advances to related parties Repayments from related parties | 395,198 (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 - begi |
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, specifically distributions, for the year 2024 were ($598,225). This indicates that Beggars Pizza distributed $598,225 to its members or owners during that year. This is a decrease compared to the $638,217 distributed in 2023.
Cash flow from financing activities generally reflects transactions related to how a company is funded, including debt, equity, and distributions to owners. A negative value, as in this case, typically represents cash outflows from the company to its owners. These distributions are not necessarily indicative of the company's profitability but rather reflect decisions about how to allocate available cash.
Prospective franchisees should consider these figures in the context of Beggars Pizza's overall financial health and its distribution policies. Understanding the factors that influence these distributions can provide insight into the company's financial management and its relationship with its owners. It's also worth comparing these figures with those of other similar franchise systems to assess whether they are within a reasonable range.