What was the net cash used by investing activities for Clean Your Dirty Face in 2023?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
399,617 | $ | 470,036 | | |
Statements of Cash Flows For the Years Ended December 31, 2024 and 2023
| 2024 | 2023 | |||
|---|---|---|---|---|
| Cash Flows from Operating Activities | ||||
| Net Income | $ 607,813 | $ | 531,500 | |
| Adjustments to reconcile net income | ||||
| to net cash provided (used) by operating activities: | ||||
| (Increase) decrease in operating assets: | ||||
| Accounts receivable | (234) | (8,706) | ||
| Member contributions receivable | (300,000) | - | ||
| Overpayment of credit card | (9,829) | - | ||
| Increase (decrease) in operating liabilities: | ||||
| Accounts payable | - | (1,440) | ||
| Credit cards payable | (2,174) | 1,487 | ||
| Accrued expenses | 3,865 | (6,877) | ||
| Deferred revenue | (150,000) | (250,000) | ||
| Net Cash Provided (Used) by Operating Activities | 149,441 | 265,964 | ||
| Cash Flows from Investing Activities | ||||
| Purchase of money market securities | - | (1,276,253) | ||
| Sale of money market securities | 526,253 | - | ||
| Net Cash Provided (Used) by Investing Activities | 526,253 | (1,276,253) | ||
| Cash Flows from Financing Activities | ||||
| Member contributions | 340,000 | 1,004,952 | ||
| Member distributions | (1,018,232) | (640,000) | ||
| Net Cash Provided (Used) by Financing Activities | (678,232) | 364,952 | ||
| Net Increase (Decrease) in Cash and Cash Equivalents | (2,538) | (645,337) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the net cash used by investing activities in 2023 was a deficit of $1,276,253. This figure reflects the company's financial transactions related to investments during that year. Specifically, it includes the purchase of money market securities, which amounted to $1,276,253.
For a prospective Clean Your Dirty Face franchisee, this information provides insight into how the company manages its finances and invests in its own growth. A significant outflow of cash for investment purposes could indicate that the company is focused on long-term strategies and expansion. However, it's essential to consider this figure in the context of the company's overall financial health and cash flow.
It is also important to note that in 2024, Clean Your Dirty Face had net cash provided by investing activities of $526,253, which included the sale of money market securities of $526,253. Reviewing these figures over multiple years can provide a more comprehensive understanding of the company's investment strategies and their impact on its financial position. A potential franchisee should discuss these trends with Clean Your Dirty Face to understand the rationale behind these investment decisions and their potential impact on the franchise system.