What was the ending cash balance for Big Blue Swim School at the end of 2024?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
liminated 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 deferred revenue which is expected to be recognized as revenue in the next year.
BIG BLUE SWIM SCHOOL FRANCHISING, LLC (A Limited Liability Company) NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2024, 2023 AND 2022
NOTE 4. MEMBER'S DEFICIT (CONTINUED)
As of the date these financial statements were available to be issued, the Company continues to focus on selling franchises, and royalties are expected to increase as franchisees continue to open and begin operations. Company's management believes that the combination of the actions taken will enable it to meet its funding requirements for one year from the date these financial statements were available to be issued. If necessary, Company's management has been advised that the Parent will continue to provide any financial assistance needed by the Company should its cash flows from operations combined with its cash balances not be sufficient to meet its working capital needs. Company's management believes that the Parent has the intent and ability to provide the funds needed, if any, to continue to fund the operations of the Company for at least one year from the date these financial statements were available to be issued.
NOTE 5. REVENUES AND RELATED CONTRACT BALANCES
Disaggregated revenues
The Company derives its revenues from franchisees located throughout the United States. The economic risks of the Company's revenues are dependent on the strength of the economy in the United States and the Company's ability to collect on its contracts. The Company disaggregates revenue from contracts with franchisees by timing of revenue recognition by type of revenue, as it believes this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
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 company's unrestricted cash balance as of December 31, 2024, was $579,182. The document also notes that Big Blue Swim School had a working capital of $726,835, which includes $124,919 in current liabilities related to deferred revenue expected to be recognized in the following year. This indicates the amount of cash the company had available for immediate use at the end of the fiscal year.
However, the FDD also mentions that Big Blue Swim School has historically sustained losses, resulting in an accumulated member's deficit of $3,021,265 as of the same date. During the year ending December 31, 2024, the company experienced cash used in operations amounting to $2,445,570. This deficit is attributed to the timing of revenue recognition of franchise fees and ongoing expenditures aimed at future growth, such as opening franchised units and expanding into new markets.
Despite these losses, management believes that the company's growth strategy and potential expense reductions will improve operating cash flows in the future. Furthermore, Big Blue Swim School's management has represented that the Parent company will provide financial assistance if the company's cash flows from operations and existing cash balances are insufficient to meet its working capital needs. This suggests that while the company's cash position is positive, it relies on external funding to support its operations and expansion efforts.