What was the net decrease in cash for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Gross | Amortization | Net | ||||
|---|---|---|---|---|---|---|
| Qualified | $ | 300,000 | $ 185,000 | $ 115,000 | ||
| Franchise | ||||||
| Agreements | ||||||
| Non‐Competition | 150,000 | 98,333 | 51,667 | |||
| Agreement | ||||||
| $ 450,000 | $ | 283,333 | $ | 166,667 |
Amortization expense was $30,000 for each year ended December 31, 2022. There was no impairment loss in 2022. Future amortization is scheduled at approximately $30,000 per year through 2027 and $16,667 in 2028.
NOTE 10 CONCENTRATIONS
Cash
Custodial credit risk is the risk that in the event of a bank failure, the Company's deposits may not be returned to the Company. Accounts at each institution are insured by the FDIC up to $250,000 for interest‐bearing acc
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not possible to determine the net decrease in cash for Closet Storage Concepts. While the document includes financial statements, it does not explicitly state the net decrease in cash. The FDD includes information on cash balances exceeding FDIC limits, but this does not provide the specific net decrease figure.
To fully understand the cash flow situation, a prospective Closet Storage Concepts franchisee should request a complete Statement of Cash Flows from the franchisor. This statement would detail all cash inflows and outflows, allowing for the calculation of the net decrease (or increase) in cash during the reported period.
Understanding the net decrease in cash is crucial for assessing the financial health and stability of Closet Storage Concepts. It helps potential franchisees evaluate how the company manages its cash resources and whether it is generating enough cash to cover its obligations and invest in future growth.