What was the reported net change in cash for Beggars Pizza?
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 net change in cash was $49,403. The beginning of the year cash was $174,543, and the end of the year cash was $223,946.
This information is from the statement of cash flows, which summarizes the movement of cash both into and out of Beggars Pizza as a company during the reported period. Understanding the net change in cash is crucial for assessing the company's liquidity and its ability to meet short-term obligations. A positive net change indicates that Beggars Pizza generated more cash than it used, increasing its financial flexibility.
For a prospective franchisee, this data point provides insight into the financial health and stability of Beggars Pizza. While the net change in cash reflects the company's overall performance, individual franchise locations may experience different cash flow dynamics based on their specific operating expenses, sales, and local market conditions. Therefore, it is important for potential franchisees to conduct their own financial analysis and projections, considering their unique circumstances, before investing in a Beggars Pizza franchise.