What was the net increase in cash for Chop5 Salad Kitchen in 2023?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
S) | -$ | (48,082) | $ | (52,836) | S | |
| Member Contributions | Accumulated (Deficit) | Total lember Equity | ||||
|---|---|---|---|---|---|---|
| BALANCE, DECEMBER 31, 2020 | $ 10 | 00,000 | $ | - | $ | 100,000 |
| Net income | - | |||||
| BALANCE, DECEMBER 31, 2021 | 10 | 00,000 | 100,000 | |||
| Net (loss) | (52 | 2,836) | (52,836) | |||
| BALANCE, DECEMBER 31, 2022 | 10 | 00,000 | (52 | 2,836) | _ | 47,164 |
| Net (loss) | (48 | 3,082) | (48,082) | |||
| BALANCE, DECEMBER 31, 2023 | $ 10 | 00,000 | $ (100 | ),918) | $ | (918) |
| YEARS | ENDI | ED DECEMB | ER 31, | |||
|---|---|---|---|---|---|---|
| 2023 |
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, the net increase in cash for the company in 2023 was $1,918. The FDD also provides comparative figures, showing a net decrease in cash of $52,836 in 2022 and no change in cash in 2021. These figures are derived from the company's statements of cash flows included in the financial statements.
It is important to note that these figures reflect the cash flow activities of Chop5 Salad Kitchen itself, the franchisor, and not the performance of individual franchise locations. A prospective franchisee should not assume that these figures are representative of the potential financial performance of a franchised Chop5 Salad Kitchen restaurant.
Reviewing the franchisor's financial statements is a standard part of franchise due diligence. Potential franchisees should carefully examine the complete financial statements and consult with a financial advisor to fully understand the franchisor's financial condition and how it might impact their investment.