What was the net cash used in financing activity for Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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) | < |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the net cash used in financing activities in 2022 was a negative amount, specifically ($178,454). This figure represents the total cash outflow resulting from financing activities during that year.
For a prospective Crave Cookies franchisee, this indicates that in 2022, the company distributed more cash to its owners than it generated from financing activities. This could include items such as owner distributions. It's important to note that this is a snapshot of a single year and may not be indicative of long-term trends.
A franchisee should consider this information in the context of the company's overall financial health and consult with a financial advisor to understand the implications for their investment. Understanding the franchisor's cash flow trends can help a franchisee assess the financial stability and potential risks associated with investing in a Crave Cookies franchise.