What was the net loss for Big Blue Swim School in 2024?
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 company had an accumulated member's deficit of $3,021,265 as of December 31, 2024. During the year ended December 31, 2024, the company's cash used in operations totaled $2,445,570. This deficit is primarily due to the timing of revenue recognition of franchise fees.
Big Blue Swim School has been funded through capital contributions since its inception. The company 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. Management has represented that certain expenses could be reduced or eliminated in order to improve operating cash flows, as needed, in the future.
As of December 31, 2024, Big Blue Swim School had $579,182 of unrestricted cash and 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. This information is crucial for prospective franchisees to understand the financial health and operational funding of the company.