What was the net cash provided by (used in) investing activities for Body Brain Center in 2022?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
istration fee | | 2,619 | | 1,779 | | Commission Income | | 8,058 | | 19,297 | | Total Revenue | | 375,479 | | 496,025 | | Operating Expenses | | 463,738 | | 520,908 | | Operating Income | | (88,259) | | (24,882) | | Other Income | | | | | | Interest income | | 24,309 | | 8,526 | | Employee leasing income | | 13,180 | | 19,928 | | Other income | | 57,666 | | 3,542 | | Other Income | | 95,155 | | 31,996 | | Net Income | | 6,896 | | 7,114 | | Beginning Member's Equity | | 908,907 | | 901,793 | | Ending Member's Equity | s | 915,803 | _$ | 908,907 |
Statement of Cash Flows
Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Cash Flows from Operating Activities | ||
| Net Income | $ 6,896 | $ 7,114 |
| Adjustments to reconcile net income to net cash provided | ||
| by operationg activities | ||
| Operating lease right-of-use assets | 32,250 | (83,216) |
| Operating lease liabilities | (32,049) | 84,076 |
| Changes in operating assets and liabilities: | ||
| (Increase) decrease in | ||
| Accounts receivable | (51) | (2,676) |
| Interest receivable | (246) | (390) |
| Others receivable | 200 | 28,503 |
| Prepaid expenses | (8,089) | (604) |
| Increase (decrease) in | ||
| Accounts payable | 9,829 | 2,302 |
| Accrued liabilities | (464) | (14) |
| Deferred revenue | (51,000) |
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the net cash used in investing activities for the year 2022 was a negative $16,211. This indicates that Body Brain Center spent more cash on investing activities than it received from them during that year.
Specifically, these investing activities included goodwill and security deposits. In 2022, Body Brain Center spent $12,885 on goodwill and $3,326 on security deposits.
For a prospective franchisee, this information provides insight into how Body Brain Center manages its finances and allocates capital. While negative cash flow from investing activities isn't necessarily negative, it's important to consider the nature of the investments and their potential long-term benefits. Franchisees may want to inquire about the company's investment strategy and how it aligns with the overall growth and profitability of the franchise system.