What was the change to Brain Balance prepaid expenses and other assets year-to-date?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Changes in Net Accounts Receivable | 228 | (85) | |
|---|---|---|---|
| Change to Inventory | (46) | (30) | |
| Changes to Prepaid Expenses and Other Assets | - | (36) | |
| Changes to Accounts Payable | (112) | (66) | |
| Changes to Sales and Used Tax Payable | - | - | |
| Changes to Accrued Liabilites and Other Liabilities | 168 | 392 | |
| Changes to Accrued Income Taxes Liabilities | - | - | |
| Changes to Deferred Income Taxes Assets | - | - | |
| Changes to Deferred Revenue | 5 | 202 | |
| Changes to Intercompany | - | 1 | |
| Net cash provided by operating Activities | $9 | ($28) |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the changes to prepaid expenses and other assets year-to-date was a decrease of $36. This figure is part of the cash flow from operating activities, which shows a net cash decrease of $28 year-to-date. This means that Brain Balance used more cash than it generated from its core business operations during this period. Prepaid expenses typically include items like insurance premiums or rent that have been paid in advance, and a decrease could indicate that fewer of these advance payments were made compared to the beginning of the year.
For a prospective franchisee, this information provides insight into how Brain Balance manages its cash flow and assets. A decrease in prepaid expenses could be a normal fluctuation or could signal changes in how the company handles its financial obligations. It's important to note that this is just one line item in the overall financial picture, and it should be considered in conjunction with other financial data to get a comprehensive understanding of the company's financial health.
It would be prudent for a potential Brain Balance franchisee to inquire about the reasons behind the decrease in prepaid expenses and other assets. Understanding the context behind this change can help in assessing the financial stability and management practices of the franchise. Additionally, comparing these figures with previous years' data, if available, can provide a more complete picture of the trend and its potential impact on the franchisee's investment.