What was the ending cash balance for Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISE LLC (A Limited Liability Company) STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| Cash flows from operating activities: Net loss Adjustments to reconcile net loss to net cash provided by (used in) | $ | (561,065) | $ (55,275) |
|---|---|---|---|
| operating activities: Depreciation and amortization Changes in operating assets and liabilities: | 263 | - | |
| Accounts and franchise fees receivable Prepaid commissions Prepaid expenses Accounts payable and accrued expenses Due to affiliates, net Deferred revenue | (205,053) (824,218) 6,638 45,257 75,928 1,262,368 | (158,498) (11,950) 4,015 - 326,995 | |
| Net cash provided by (used in) operating activities | (199,882) | 105,287 | |
| Cash flows from investing activities: Additions to property and equipment Increase (decrease) in due to (from) member | _ | (1,054) 339,907 | - (300,000) |
| Net cash provided by (used in) investing activities | 338,853 | (300,000) | |
| Cash provided by financing activities: Member's contributions | _ | 200,000 | |
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the ending cash balance for the company was $144,258 as of December 31, 2024, and $5,287 as of December 31, 2023. This information is derived from the statements of cash flows included in the financial statements. These figures represent the actual cash on hand that Chatime had at the close of each of those years.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees. The increase in cash from $5,287 in 2023 to $144,258 in 2024 could indicate improved financial performance or capital infusion. However, it is essential to investigate the reasons behind this change to fully understand its implications.
It's also important to note that these cash balances reflect the financial position of Chatime Franchise LLC, the entity responsible for franchising in the United States, and not necessarily the entire global Chatime organization. Franchisees should consider these figures in conjunction with other financial metrics and disclosures within the FDD to assess the overall financial health and stability of the franchise system. Reviewing multiple years of financial statements, if available, can provide a more comprehensive understanding of the franchisor's financial trends.