What was the net cash used by operating activities for Bhc?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Gross Profit | 1,023,504 | | Operating Expenses | 2,481,699 | | Loss from Operations | (1,458,195) | | Other Income (Expenses): | | | Interest income | 62 | | Interest expense | (41,602) | | Other expense, net | (353) | | Loss on inventory | (27,257) | | Total Other Income (Expenses) | (69,150) | | Loss before Income Tax | (1,527,345) | | Income Tax Provision | (2,400) | | Net Loss | (1,529,745) | | Other Comprehensive Income | 0 | | Total Comprehensive Loss | $ (1,529,745) |
YEAR ENDED DECEMBER 31, 2024
| Capital Contribution | 760,000 |
|---|---|
| Net Loss | (1,529,745) $ 839,898 |
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the net cash used by operating activities was $(515,791). This figure indicates the amount of cash Bhc used in its core business operations during the reported period. It is calculated by adjusting net loss to account for non-cash items and changes in working capital accounts.
For a prospective franchisee, a negative net cash flow from operating activities, such as the $(515,791) reported by Bhc, could raise concerns. It suggests that the business's primary activities are not generating enough cash to cover its expenses. This could be due to various factors, such as low sales, high operating costs, or inefficient management of working capital.
However, it's important to consider this figure in the context of Bhc's overall financial performance and business strategy. For example, Bhc may be investing heavily in growth initiatives, which could temporarily depress operating cash flow. Additionally, the FDD shows a net loss of $(1,529,745), which significantly impacts the cash flow from operations. Prospective franchisees should investigate the reasons behind the negative cash flow and assess whether it is a temporary situation or a sign of underlying problems. Reviewing several years of financial statements, if available, would provide a more complete picture of Bhc's financial health.