What was the amount of owner distributions for Bor Restoration in 2022?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
ative expenses | 592,756 | 263,246 | 108,423 | | Marketing expenses | 23,702 | 4 | 4,155 | | Total Operating Expenses | 834,562 | 520,649 | 251,820 | | NET INCOME | $ 386,160 | $ 420,082 | $ 291,217 |
| Beginning owners' equity | $ 304,641 | $ | 220,953 | $ 244,736 |
|---|---|---|---|---|
| Net contributions (distributions) | (52,004) | (336,394) | (315,000) | |
| Net income | 386,160 | 420,082 | 291,217 | |
| ENDING OWNERS' EQUITY | $ 638,797 | $ | 304,641 | $ 220,953 |
| 2022 | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Cash flows from operating activities: | |||||
| Net income | $ | 386,160 | $ | 420,082 | $ 291,217 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||
| Amortization | 2,738 | ||||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | (33,624) | (25,761) | (10,293) | ||
| Prepaid expenses | 117,025 | (119,713) | |||
| Other asse |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the owner distributions for 2022 were $52,004. This figure reflects the cash outflow from the company to its owners during that year. This information is derived from the cash flow statement, which details the movement of cash both into and out of the business. Owner distributions are a component of cash flows from financing activities. These activities also include owner contributions.
For a prospective Bor Restoration franchisee, understanding owner distributions is crucial because it provides insight into how the company manages its finances and returns capital to its owners. A high level of distributions could indicate strong profitability, but it could also mean less reinvestment in the business for growth. Conversely, low distributions might suggest reinvestment or financial constraints.
It's important to note that the figure provided is specifically for owner distributions and does not include other forms of compensation or benefits that the owners might receive. Additionally, this number reflects the activity at the franchisor level, BOR Franchising, LLC, and not the performance of individual franchise units. Franchisees should focus on their own unit's profitability and cash flow management.
Reviewing the trend of owner distributions over several years, as presented in the FDD, can offer a more comprehensive understanding of the financial strategy of Bor Restoration. Comparing these distributions to net income and other financial metrics can provide a clearer picture of the company's financial health and its approach to rewarding ownership.