What were the payments for acquired franchises and capital expenditures for Boulder Designs in 2024?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
135,967 | 183,606 | | General and administrative expenses | 1,250,875 | 1,301,065 | 1,266,488 | | | 2,192,873 | 2,251,831 | 2,055,860 | | Operating income (loss) | 136,924 | (662,471) | 108,254 | | Interest expense | (14,073) | (21,578) | (4,884) | | Other expense | (28,000) | (31,696) | (36,241) | | Net income (loss) | 94,851 | (715,745) | 67,129 | | Member's deficit, beginning of year | (3,810,894) | (2,996,967) | (2,779,329) | | Contributions from member | 87,889 | 259,214 | 403,269 | | Distributions to member | (493,883) | (357,396) | (688,036) | | Member's deficit, end of year | $ (4,122,037) | (3,810,894) | (2,996,967) |
Statements of Cash Flows
Years Ended December 31,
| _ | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 94,851 | (715,745) | 67,129 |
| Adjustments to reconcile net income (loss) to net | · | , , , | · | |
| cash from operating activities: | ||||
| Depreciation and amortization | 25,731 | 24,988 | 25,680 | |
| Provision for credit losses | 86,025 | 30,799 | 13,287 | |
| Impairment loss on acquired franchise | ||||
| agreements | 28,000 | 30,000 | 30,000 | |
| Changes in operating assets and liabilities: | ||||
| Franchise fees receivable | 70,103 | (503,303) | (11,365) | |
| Inventory | 61,051 | 27,531 | 21,766 | |
| Deferred costs | 75,212 | (15,134) | (115,101) | |
| Other receivables | (2,932) | (868) | (700) | |
| Trade accounts payable and | ||||
| accrued expenses | 6,111 | (210,366) | 298,101 | |
| Deferred franchise fees | _ | 243,044 | 1,702,881 | 84,557 |
| Net cash provided by operating activities | 687,196 | 370,783 | 413,354 | |
| Cash flows from investing activities: | ||||
| _ | 30,986 | (6,331) | ||
| Advances to (repayments from) related party | - | (20,000) | (204,500) | |
| Payments for acquired franchises Capital expenditures | (8,860) | (20,000) | (8,244) | |
| _ | (0,000) | (0,244) | ||
| Net cash provided by (used in) investing activities | (8,860) | 10,986 | (219,075) | |
| investing activities | _ | (8,800) | 10,780 | (217,075) |
| Cash flows from financing activities: | ||||
| Proceeds from iss |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the payments for acquired franchises and capital expenditures in 2024 totaled $8,860. This figure is part of the cash flows from investing activities reported in the financial statements.
This indicates the amount Boulder Designs spent to repurchase franchise rights and on capital assets during the year. Acquired franchises are previously sold franchise rights that Boulder Designs repurchased due to various circumstances, with the intent to resell them. Capital expenditures typically include investments in tangible assets like equipment or property.
For a prospective franchisee, this information provides insight into Boulder Designs' investment activities and how it manages its franchise network. The amount spent on acquiring franchises could reflect the stability and health of the existing franchise system. It is important to note that the FDD does not provide a breakdown of how much of the $8,860 was spent on acquired franchises versus capital expenditures, so further clarification from Boulder Designs may be beneficial.