What were the net distributions to Carvel members at the end of the financial year December 29, 2024?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 46,288 |
| Long-term other liabilities | 124 | | 125 | | Total liabilities | 60,709 | | 57,584 | | Commitments and contingencies (see Note 7) | | | | | Member's equity: | | | | | Member's equity | 285,638 | | 283,330 | | Total Member's equity | 285,638 | | 283,330 | | Total liabilities and Member's equity | $ 346,347 | $ | 340,914 |
Consolidated statements of operations
| Member's equity | 285,638 | 2 83,330 | |
|---|---|---|---|
| Total Member's equity | 285,638 | 2 83,330 | |
| Total liabilities and Member's equity |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the net distributions to members at the end of the fiscal year December 29, 2024, were ($251,656). This figure reflects the cash flow from financing activities related to distributions made to the Carvel members during that period. This indicates the amount of money distributed to the members after accounting for any capital contributions or other adjustments.
This distribution is part of the broader cash flow statement, which includes operating, investing, and financing activities. The cash flow statement provides a comprehensive view of how Carvel managed its cash during the fiscal year. For instance, the net income for the same period was $253,964, and there were adjustments for depreciation, amortization, and changes in assets and liabilities, ultimately resulting in net cash provided by operating activities of $250,583.
Prospective franchisees should consider these distributions in the context of Carvel's overall financial health and profitability. While distributions can be a positive sign, it's important to understand how they are funded and whether they are sustainable. Reviewing several years of financial statements, as provided in the FDD, can offer insights into trends and patterns in Carvel's distributions and cash management practices. It is also important to note that the cash distribution paid to the Parent's shareholders for the year ended December 29, 2024 was ($123,066).
Understanding the relationship between net income, cash flow, and distributions is crucial for assessing the financial stability and investment potential of a Carvel franchise. A potential franchisee should consult with a financial advisor to fully understand the implications of these figures.