What was the amount of cash provided by member's contributions to Big Blue Swim School in 2023?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
old to a related party through common ownership
NOTE 4. MEMBER'S DEFICIT
The Company has historically sustained losses primarily due to the timing of revenue recognition of franchise fees and, as a result, has an accumulated member's deficit of $3,021,265 as of December 31, 2024. During the year ended December 31, 2024, the Company had cash used in operations of $2,445,570. Since inception, the Company's operations have been funded through a combination of capital contributions. Management has represented that the Company is growing and, as such, is incurring expenditures in the near term to benefit the future as developers open franchised units and as the Company looks to grow the franchisee base and expand into new markets. In addition, management has represented certain expenses could be reduced or eliminated in order to improve operating cash flows, as needed, in the future.
As of December 31, 2024, the Company had $579,182 of unrestricted cash. The Company has positive working capital of $726,835, of which $124,919 of current liabilities are related to de
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the specific amount of cash provided by member's contributions in 2023 is not explicitly detailed. However, the document does state that since its inception, Big Blue Swim School's operations have been funded through a combination of capital contributions.
While the FDD does not provide a precise figure for the cash contributions made by members in 2023, it does offer some context regarding the company's financial situation. For example, as of December 31, 2024, Big Blue Swim School had an accumulated member's deficit of $3,021,265 and cash used in operations of $2,445,570 during that year. Additionally, the company had $579,182 of unrestricted cash and positive working capital of $726,835 as of the same date.
Given the absence of a specific number for member contributions in 2023, a prospective Big Blue Swim School franchisee should consider asking the franchisor directly for this information. Understanding the historical trends and sources of funding can provide valuable insights into the financial stability and capital structure of the franchise system. It would also be prudent to inquire about the anticipated future funding needs and how the franchisor plans to meet those requirements to support the growth of Big Blue Swim School.