What was the cash at the end of the period for Corner Bakery Cafe in 2024?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
, December 31, 2024 | $ | 177,210 | $ | 6,144,428 | $ | 6,321,638 | |
Statement of Cash Flows For the Reporting Periods ended December 31, 2024 and 2023
| 2024 | 2023 | ||
|---|---|---|---|
| Cash flows from operating activities: | |||
| Cash provided by operating activities: | |||
| Cash received from franchise royalty fees | $ | 2,861,906 | 1,604,088 |
| Cash received from advertising fund fees | 1,323,241 | 678,324 | |
| Cash received from other franchise fees | 146,790 | 28,056 | |
| Cash received fromacquired accounts receivable | 796,353 | ||
| Cash used by operating activities: | |||
| Cash paid to employees | (1,184,888) | (675,282) | |
| Cash paid to service providers and vendors | (2,160,721) | (815,396) | |
| Net cash provided by operating activities | 1 | 986,328 | 1,616,143 |
| Cash flows from financing activities: | |||
| Loans to related parties | (1,146,146) | (1,255,304) | |
| Net cash used by financing activities | (1,146,146) | (1,255,304) | |
| Net (decrease) increase in cash | (159,818) | 360,839 | |
| Cash, beginning of period | 360,839 | - | |
| Cash, end of period | $ | 201,021 | $ 360,839 |
| Reconciliation of net income to net cash provided by operating activities: | |||
| Net income | $ | 146,625 | 30,585 |
| Amortization expense | 1,042,272 | 699,263 | |
| Noncash change to due from related parties | (163,829) | 157,981 | |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Accounts receivable | 81,915 | 469,126 | |
| Prepaid expenses | 5,151 | (10,000) | |
| Accounts payable and accrued liabilities | 47,735 | 51,061 | |
| Advertising fund liabilities | (173,541) | 218,127 | |
| Net cash provided by operating activities | $ | 986,328 | 1,616,143 |
| SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION: | |||
| Member contribution of acquired franchise agreements Member contribution of acquired accounts receiva |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Corner Bakery Cafe's 2025 Franchise Disclosure Document, the cash at the end of the period in 2024 was $201,021. This figure represents the total amount of cash that Corner Bakery Cafe had on hand as of December 31, 2024, after accounting for all cash inflows and outflows during the year. In comparison, the cash at the end of the period for 2023 was $360,839.
This decrease in cash from 2023 to 2024 could be due to a variety of factors, such as increased operating expenses, investments in new equipment or technology, or changes in financing activities. For example, the net decrease in cash for 2024 was ($159,818). This is calculated from the net cash provided by operating activities which was $986,328, and net cash used by financing activities which was ($1,146,146).
For a prospective Corner Bakery Cafe franchisee, this information is useful for understanding the company's financial health and cash flow management. While a decrease in cash may raise concerns, it is important to consider the context and reasons behind the change. A franchisee should investigate further to understand the specific factors that contributed to the decrease and whether they are indicative of any underlying financial issues. It is also important to note that the company states that cash balances exceeded federally insured amounts by $110,839 as of December 31, 2023, while no cash balances exceed such limits as of December 31, 2024.
It is important for potential franchisees to review the entire financial statement and ask Corner Bakery Cafe for clarification on any items that are unclear or concerning. Understanding the company's financial performance and cash flow trends is crucial for making an informed investment decision.