What was the net cash provided by (used in) operating activities 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 |
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) operating activities was analyzed for two years. In 2024, Chatime's net cash used in operating activities was reported as ($199,882). In 2023, the net cash provided by operating activities was $105,287.
This information is crucial for prospective franchisees as it provides insight into the company's financial performance and its ability to generate cash from its core business operations. A negative value, as seen in 2024, suggests that the company used more cash than it generated from operations during that period, which could be a concern. Conversely, the positive value in 2023 indicates that the company generated more cash than it used.
Understanding these cash flow dynamics can help a potential franchisee assess the financial stability of Chatime and the potential risks and rewards associated with investing in the franchise. It's important to consider these figures in conjunction with other financial data and qualitative factors to make a well-informed decision. Franchisees should inquire about the reasons for the fluctuations in cash flow between the two years to gain a clearer understanding of the company's financial health and future prospects.