What was the net cash provided by operating activities for Black Bear Diner in 2024?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | ||
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income | $ 7,649,722 | $ 6,833,879 | |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Amortization of intangible assets | 3,284,405 | 3,292,515 | |
| Profits interest units compensation | 35,000 | 50,000 | |
| Depreciation and amortization of property and equipment | 1 18,463 | 86,353 | |
| Amortization of right-of-use lease assets | 1 00,232 | 98,637 | |
| Changes in operating assets and liabilities: | |||
| Accounts receivable | ( 147,513) | 12,843 | |
| Related-party receivable | 28,128 | (101,351) | |
| Prepaid expenses and other assets | (98,052) | (43,039) | |
| Accounts payable | ( 328,905) | 229,428 | |
| Accrued payroll and related liabilities | (1,202,185) | 614,625 | |
| Reduction of operating lease liabilities | ( 100,138) | (95,331) | |
| Franchise fee deposits | (28,000) | (81,500) | |
| Gift card contract liabilities | 78,454 | 17,159 | |
| Other accrued expenses | 175,044 | (422,799) | |
| Net cash provided by operating activities | 9,564,655 | 10,491,419 | |
| Cash flows from investing activities: | |||
| Purchases of property and equipment | ( 179,687) | (168,891) | |
| Net cash used in investing activities | ( 179,687) | (168,891) | |
| Cash flows from financing activities: | |||
| Repayments of SBA loans under the Paycheck Protection Program | (29,031) | (28,742) | |
| Member distributions | (14,102,475) | (7,965,000) | |
| Net cash used in financing activities | (14,131,506) | (7,993,742) | |
| Net increase (decrease) in cash, cash equivalents and | |||
| restricted cash | (4,746,538) | 2,328,786 | |
| Cash, cash equivalents and restricted cash, beginning of year | 7,470,498 | 5,141,712 | |
| Reconciliation of cash, cash equivalents and restricted cash | |||
| --- | --- | --- |
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2024 was $9,564,655. This figure represents the cash flow generated from the company's core business operations during that year. It's a key indicator of Black Bear Diner's financial health and its ability to fund ongoing expenses and future growth.
The FDD also provides a breakdown of how net income is reconciled to net cash provided by operating activities. This includes adjustments for non-cash items like amortization of intangible assets ($3,284,405) and depreciation and amortization of property and equipment ($118,463), as well as changes in operating assets and liabilities such as accounts receivable (-$147,513) and accounts payable (-$328,905). These adjustments are necessary because net income is calculated on an accrual basis, while cash flow reflects actual cash inflows and outflows.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial. It demonstrates the brand's ability to generate cash from its operations, which can impact the franchisor's ability to support franchisees and invest in the brand. A positive and stable cash flow from operations is generally a good sign, suggesting that the business model is sustainable and profitable. However, it's important to consider this figure in conjunction with other financial metrics and to understand the factors that contribute to it.