What was the net cash provided by operating activities for Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
of Cash Flows
Year Ended December 31, 2022 and Period from February 15, 2021 (Inception) through December 31, 2021
| 2022 | 2021 | |||
|---|---|---|---|---|
| Operating Activities | 107 | 720 | ||
| Net loss | S | (84,420) | $ | (14,725) |
| Items not requiring (providing) cash | 100 | |||
| Depreciation | 4,584 | 400 | ||
| Non-cash operating lease expense | 8,042 | - | ||
| Changes in | ||||
| Accounts receivable | (17,607) | 50 m | ||
| Inventory | 14,319 | (21,515) | ||
| Prepaid expenses | (33,205) | |||
| Contract assets | 44,595 | (44,595) | ||
| Accounts payable and accrued expenses | 32,788 | 17,176 | ||
| Lease liability | (7,719) | 7 | ||
| Contract liabilities | - | 324,252 | 8 | 330,419 |
| Net cash provided by operating activities | 285,629 | 10 | 267,160 | |
| Investing Activities | ||||
| Purchase of property and equipment | (16,064) | (7,208) | ||
| Repayments on notes receivable - related party | 170,400 | |||
| Borrowings on notes receivable - related party | - | (114,471) | _ | (62,899) |
| Net cash provided by (used in) investing activities | _ | 39,865 | 8 | (70,107) |
| Financing Activities | ||||
| Owners distributions | _ | (178,454) | ): | (162,876) |
| Net cash used in financing activities | 3 | (178,454) | (162,876) | |
| Change in Cash | 147,040 | 34,177 | ||
| Cash, Beginning of Period | 2 | 34,177 | 70 | |
| Cash, End of Period | s | 181,217 | s | 34,177 |
| Non-cash Supplemental |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $285,629. This figure reflects the cash generated from the company's core business operations during that year. In comparison, the net cash provided by operating activities in 2021 was $267,160.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial as it indicates the financial health and stability of Crave Cookies. A positive and increasing trend in this metric suggests that the company is effectively generating cash from its operations, which can be a good sign for potential investors. It demonstrates the brand's ability to manage its working capital, control costs, and generate revenue efficiently.
However, it's important to note that this figure is just one aspect of the overall financial picture. A potential franchisee should also consider other factors such as net loss, changes in accounts receivable, inventory, prepaid expenses, and contract liabilities to get a comprehensive understanding of the company's financial performance. Additionally, comparing these figures with industry benchmarks and analyzing the company's financial statements over several years can provide a more informed perspective.
Ultimately, while the $285,629 net cash provided by operating activities in 2022 appears positive, prospective franchisees should conduct thorough due diligence and consult with financial advisors to assess the risks and opportunities associated with investing in a Crave Cookies franchise.