What was the amount of cash Degree Wellness had on hand as of April 1, 2024?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
124,859 140,174 25,000 2,506,796 192,000 | | Lease liabilities, operating leases (note 6) | 155,795 | | Total liabilities | 3,144,624 | | Members' deficit | (440,264) | | Total liabilities and members' deficit | $ 2,704,360 |
STATEMENT OF EARNINGS AND MEMBERS' EQUITY (DEFICIT) PERIOD APRIL 1, 2024 THROUGH DECEMBER 31, 2024
| Revenues | $ 116,204 |
|---|---|
| Operating expenses | 1,003,480 |
| Net loss | (887,276) |
| Members' equity - April 1, 2024 | 197,012 |
| Contributions from members | 250,000 |
| Members' deficit - December 31, 2024 | $ (440,264) |
STATEMENT OF CASH FLOWS PERIOD APRIL 1, 2024 THROUGH DECEMBER 31, 2024
| Cash flows from operating activities Net loss | $ (887,276) | |---------------------------------------
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the company's cash on hand as of April 1, 2024, was $206,445. This figure represents the starting cash balance for the period from April 1, 2024, through December 31, 2024, as detailed in the Statement of Cash Flows.
This information is crucial for prospective franchisees as it provides insight into the financial health and liquidity of Degree Wellness at the beginning of the reporting period. A healthy cash balance suggests that the company has sufficient funds to cover its immediate obligations and invest in growth opportunities.
The FDD also indicates that Degree Wellness's cash balance increased to $428,587 by December 31, 2024. This increase reflects the net effect of cash flows from operating, financing, and investing activities during that period. Reviewing the complete Statement of Cash Flows can give potential franchisees a better understanding of how Degree Wellness manages its finances and generates cash.
| Cash flows from operating activities Net loss | $ (887,276) |
|---|---|
| Adjustments | |
| Decrease/(increase) in assets | |
| Deferred franchise fees | (2,092,659) |
| Prepaid expenses and other | (27,319) |
| Increase/(decrease) in liabilities | |
| Accounts payable - related party | 118,676 |
| Accounts payable - trade | 136,924 |
| Accrued liabilities | 25,000 |
| Deferred franchise revenue | 2,506,796 |
| Deferred training revenue | 192,000 |
| Total adjustments | 859,418 |
| Net cash used in operating activities | (27,858) |
| Cash flows from financing activities | |
| Contributions from members | 250,000 |
| Net increase in cash | 222,142 |
| Cash - April 1, 2024 | 206,445 |
| Cash - December 31, 2024 | $ 428,587 |