What was the cash balance for Better Blend at the beginning of the year?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Net loss | $ (307,811) |
|---|---|
| Adjustments to reconcile net loss to net cash | |
| flows used by operating activities: | |
| Changes in operating assets and liabilities: | |
| Royalties and marketing receivable | (3,659) |
| Deposits | (5) |
| Accounts payable and accrued expenses | 50,589 |
| Deferred revenue | 185,083 |
| Cash flows used by operating activities Cash flows from financing activities | (75,803) |
| - | 49,220 |
| Proceeds from issuance of note payable to related party | 49,220 |
| Cash flows provided by financing activities | 49,220 |
| Net decrease in c |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the company's cash balance at the beginning of the year was $63,295. This figure represents the amount of cash Better Blend had on hand at the start of the fiscal year, which is a key indicator of the company's financial health and liquidity.
This cash balance is important for covering immediate expenses, funding operations, and potentially investing in growth opportunities. For a prospective franchisee, a healthy beginning cash balance for the franchisor suggests financial stability and the ability to support the franchise system.
However, it's also important to consider how this cash balance relates to Better Blend's overall financial performance, including revenues, expenses, and liabilities. The FDD also indicates that the cash balance at the end of the year was $36,712, which represents a net decrease in cash of $26,583 during the year. This decrease should prompt further investigation into the company's cash flow management and spending habits.
Prospective franchisees should review the complete financial statements and notes in Item 21 of the FDD to gain a comprehensive understanding of Better Blend's financial condition. Consulting with a financial advisor is also recommended to assess the implications of these figures for their investment decision.