What were the cash flows from financing activities for Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
s.
STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2023
| 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 cash flows from financing activities for the year ending December 31, 2023, totaled $49,220. This amount is attributed to proceeds from the issuance of a note payable to a related party.
For a prospective franchisee, understanding the franchisor's cash flow from financing activities provides insight into how Better Blend is funding its operations and growth. In this case, the financing activities are related to a note payable to a related party, Better Blend Nutrition, LLC.
It is important to note that this note is non-interest bearing, unsecured, and due in full in 2026. This arrangement suggests a close financial relationship between Better Blend Franchising, LLC and Better Blend Nutrition, LLC. A potential franchisee should further investigate the terms of this related-party transaction and its potential impact on the financial stability of Better Blend.