What was the total cash and restricted cash for Brain Balance at the end of 2024?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignment is binding upon and inures to the benefit of the parties hereto and their respective successors, heirs, representatives, and permitted assigns.
| Contributions | 539,393 | |---|---| | Balance - December 31, 2024 | $203,309 |
EXHIBIT 6 SECTION 16.07
OWNER'S GUARANTY AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS
| | Years Ended December 31, 2024, 2023, and 2022 | | | | |---|---|---|---|---| | | 2024 | 2023 | 2022 | | | Cash Flows from Operating Activities | | | | | | Net (loss) income | $(324,837) $ | 161,876 $ | 307,374 | | | Adjustments to reconcile net (loss) income to net cash and | | | | | | restricted cash from operating activities: | | | | | | Depreciation and amortization | 49,819 | 29,920 | 24,806 | | | Credit loss expense | 59,741 | 5,560 | - | | | Changes in operating assets and liabilities that (used) | | | | | | provided cash and restricted cash: | | | | | | Accounts receivable | (126,097) | 42,623 | (75,804) | | | Deferred franchise costs | 20,050 | 23,393 | 19,952 | | | Prepaid expenses and other assets | (33,382) | (10,615) | 53,332 | | | Accounts payable and accrued expenses | (66,584) | (46,246) | 81,063 | | | Deferred revenue | 16,809 | (89,332) | (96,172) | | | Accrued advertising expenses | (56,130) | (98,824) | 84,461 | | | Net cash and restricted cash (used in) provided | | | | | | by operating activities | (460,611) | 18,355 | 399,012 | | | Cash Flows from Investing Activities | | | | | | Issuance of notes receivable | (61,946) | - | - | | | Purchases of website and software development assets | (52,423) | (146,179) | (41,022) | | | Payments on notes receivable | 31,221 | - | 20,000 | | | Net cash and restricted cash used in investing | | | | | | activities | (83,148) | (146,179) | (21,022) | | | Cash Flows from Financing Activities | | | | | | Advance to related party | | - | - | (422,848) | | Payments on debt | (3,515) | (7,507) | (3,006) | | | Member contribution | 539,393 | 109,029 | - | | | Net cash and restricted cash provided by (used | | | | | | in) financing activities | 535,878 | 101,522 | (425,854) | | | Net Decrease in Cash and Restricted Cash | (7,881) | (26,302) | (47,864) | | | Cash and Restricted Cash - Beginning of year | 155,826 | 182,128 | 229,992 | | | Cash and Restricted Cash - End of year | $147,945 $ | 155,826 $ | 182,128 | | | Classification of Cash and Restricted Cash | | | | | | Cash | $64,403 $ | 21,796 $ | 61,068 | | | Restricted cash | 83,542 | 134,030 | 121,060 | | | | $147,945 $ | 155,826 $ | 182,128 | | | Total cash and restricted cash | | | | | | Supplemental Cash Flow Information - Cash paid for interest | $5,988 $ | 5,671 $ | 5,784 | | | Significant Noncash Transactions - Amounts advanced to | | | | | | related parties in 2022 and reclassified as distributions in 2022 | $ | - $ | - $ | 422,848 | hereby personally and unconditionally: (1) guaranties to FRANCHISOR and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement;
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the total cash and restricted cash at the end of 2024 was $147,945. This total is comprised of two components: cash, which amounted to $64,403, and restricted cash, which totaled $83,542. These figures reflect the financial position of Brain Balance at the close of the fiscal year. For comparison, the total cash and restricted cash at the end of 2023 was $155,826, with $21,796 in cash and $134,030 in restricted cash.
The restricted cash is further detailed in Note 2, which discusses the national advertising fund. The amount of cash restricted for advertising fund expenses at the end of 2024 was $83,542. This fund is supported by advertising fees collected monthly from franchisees, based on a percentage of their gross sales. These fees are used for advertising and marketing expenses to promote brand awareness.
Prospective franchisees should note the distinction between cash and restricted cash. While cash is readily available for general business purposes, restricted cash is specifically earmarked for advertising expenses. Understanding these figures is crucial for assessing the financial health and advertising strategy of Brain Balance. A potential franchisee should inquire about the specific uses of the advertising funds and the impact of these expenditures on franchisee revenue.