What was the total amount of cash used in investing activities for Bonchon in 2023?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Cash flows from operating activities: | |||||
| Net income | $387,555 | $578,721 | $2,020,014 | ||
| Adjustments to reconcile net income to net cash | |||||
| provided by operating activities: | |||||
| Depreciation and amortization | 330,221 | 746,312 | 681,340 | ||
| Impairment loss on software | - | 48,311 | 63,854 | ||
| Provision for doubtful accounts | 14,355 | - | 17,460 | ||
| Non-cash lease expense | - | 85,587 | 168,044 | ||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | (34,724) | (32,512) | (60,111) | ||
| Due from Parent | (5,271) | 102,869 | 234,822 | ||
| Due from related parties | - | 852 | 701,634 | ||
| Prepaid commissions | (88,593) | (40,052) | (48,790) | ||
| Prepaid expenses and other current assets | (13,188) | 23,438 | (73,655) | ||
| Employee Retention Tax Credit receivable | - | 614,749 | (614,749) | ||
| Security deposits | - | 96,353 | - | ||
| Accounts payable and accrued expenses | (118,130) | 234,752 | (510,757) | ||
| Due to Parent | (9,785) | 9,785 | - | ||
| Due to related parties | (83,248) | (982,251) | 1,136,996 | ||
| Deferred revenues | 175,926 | (140,295) | (549,620) | ||
| Operating lease liability | - | (112,294) | (261,198) | ||
| Net cash provided by operating activities | 555,118 | 1,234,325 | 2,905,284 | ||
| Cash used in investing activity: | |||||
| Purchases of property and equipment | (30,227) | (250,535) | (436,079) | ||
| Cash used in financing activity: | |||||
| Member distributions | - | (800,000) | (1,500,000) | ||
| Net increase in cash | 524,891 | 183,790 | 969,205 | ||
| Cash - beginning | 4,391,378 | 4,207,588 | 3,238,383 | ||
| CASH - ENDING | $4,916,269 | $4,391,378 | $4,207,588 |
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the total cash used in investing activities for Bonchon in 2023 was $250,535. This figure represents the amount of money Bonchon spent on purchases of property and equipment during that year.
For a prospective franchisee, understanding Bonchon's investment activities can provide insight into the company's growth strategy and capital expenditure habits. Significant investment in property and equipment could indicate expansion or upgrades to existing infrastructure, which may indirectly benefit franchisees through improved brand recognition or operational efficiencies.
However, it's important to note that this figure only reflects Bonchon's corporate-level investments and does not include any investments that individual franchisees may be required to make in their own restaurants. Franchisees should carefully consider their own capital expenditure requirements and how they align with Bonchon's overall investment strategy.