What was the net cash from investing activities for Bens Soft Pretzels in 2024?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
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BEN'S SOFT PRETZELS FRANCHISING CORPORATION STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net income | $ 338,260 | $ 262,767 | $ 325,475 |
| Adjustments to reconcile net income to net | |||
| cash provided by operating activities | |||
| Depreciation | 54,160 | 49,812 | 29,526 |
| Gain on sale of asset | (33,000) | - | - |
| ERC grant income | - | - | (6,027 |
| (Increase) decrease in assets | |||
| Accounts receivable, net | (138,340) | 8,305 | (66,654 |
| Franchise fees receivable | 6,000 | 19,000 | (34,000 |
| Related party receivables | 65,070 | (27,995) | (346,005 |
| Rebates receivable | 6,998 | (5,090) | (2,796 |
| Other current assets | (5,031) | (22,512) | 4,494 |
| Increase (decrease) in liabilities | |||
| Accounts payable | (12,562) | (8,191) | 24,844 |
| Accounts payable - related parties | 7,643 | (1,044) | 6,508 |
| Gift cards payable | 1,292 | 5,198 | 5,392 |
| Accrued salaries and wages | 5,469 | 4,667 | 1,503 |
| Accrued property tax | 600 | 7,500 | - |
| Deferred revenue and rebates | 43,708 | (47,358) | 40,935 |
| Other current liabilities | 1,608 | - | - |
| Net cash from operating activities | 341,875 | 245,059 | (16,805 |
| Cash flows from investing activities | |||
| Purchase of property and equipment | (52,360) | (329,093) | (101,578 |
| Net cash from investing activities | (52,360) | (329,093) | (101,578 |
| Cash flows from financing activities | |||
| Proceeds from long-term debt | - | 247,200 | - |
| ERC grant proceeds | - | - | 6,027 |
| Principal payments on long-term debt | (21,768) | (20,751) | (12,048 |
| Distributions | (212,385) | (121,663) | (55,884 |
| Net cash from financing activities | $ (234,153) | $ 104,786 | $ (61,905 |
BEN'S SOFT PRETZELS FRANCHISING CORPORATION STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2024, 2023
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to Bens Soft Pretzels' 2025 Franchise Disclosure Document, the net cash from investing activities in 2024 was a negative $52,360. This indicates that Bens Soft Pretzels used $52,360 more cash than it generated from its investing activities during the year. Investing activities generally include the purchase and sale of long-term assets, such as property, plant, and equipment.
For a prospective franchisee, this figure provides insight into how Bens Soft Pretzels is investing in its own business. A negative cash flow from investing activities often suggests that the company is expanding or upgrading its assets, which could be a positive sign. However, it's important to consider this figure in the context of the company's overall financial health and strategy.
In 2024, the primary investing activity for Bens Soft Pretzels was the purchase of property and equipment, which totaled $52,360. Reviewing the trend over the three years presented in the statement of cash flows, the investment in property and equipment has fluctuated. In 2023, Bens Soft Pretzels invested $329,093, and in 2022, the investment was $101,578. These figures can help a franchisee understand the capital expenditure patterns of Bens Soft Pretzels.
It is important to note that while the provided financial statements are audited, prospective franchisees should consult with a financial advisor to fully understand the implications of these figures and how they relate to their own investment decisions. Understanding the franchisor's investment activities can provide valuable context when evaluating the overall financial stability and growth potential of the franchise system.