What was the net cash provided by (used in) investing activities for Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | _ |
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the net cash provided by (used in) investing activities shows different values for 2024 and 2023. In 2024, Chatime had net cash provided by investing activities of $338,853. However, in 2023, Chatime's net cash used in investing activities was ($300,000).
Investing activities typically include the purchase and sale of long-term assets, such as property, equipment, and investments. A positive value, as seen in 2024, suggests that Chatime generated cash from these activities, possibly through the sale of assets or a decrease in amounts due from members. Conversely, a negative value in 2023 indicates that Chatime used cash for investing activities, such as purchasing property and equipment or an increase in amounts due from members.
For a prospective franchisee, these figures offer insight into how Chatime manages its capital and invests in its business. Significant fluctuations in these values from year to year could signal changes in the company's investment strategy or financial health. It would be prudent for a potential franchisee to inquire about the specific activities that contributed to these cash flows and understand the long-term implications of Chatime's investment decisions.