What was the change in deposits 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 change in deposits was a decrease of $5. This figure is part of the adjustments to reconcile net loss to net cash flows used by operating activities. It reflects a slight decrease in the deposit amounts held by Better Blend during the audited period.
For a prospective franchisee, this specific change in deposits is unlikely to have a significant direct impact. However, it is part of a broader picture of the company's financial health and cash flow management. Monitoring changes in operating assets and liabilities, such as deposits, can provide insights into how Better Blend manages its finances.
While a $5 decrease is minimal, franchisees should pay attention to the overall trends in Better Blend's financial statements. Consistent decreases in cash flow or significant changes in operating assets and liabilities could indicate potential financial challenges for the franchisor. It is advisable to review the complete financial statements and discuss any concerns with a financial advisor.