What was the net cash used in investing activities for Dog Haus in 2023?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Cash Flows From Operating Activities | |||||
| Net income | $ 1,768,361 | $ 2,344,415 | $ 2,250,546 | ||
| Adjustments to reconcile net income to cash | |||||
| provided by operations: | |||||
| Depreciation and amortization | |||||
| 14,943 | 21,833 | 5,274 | |||
| Amortization of right of use asset | 126,311 | 154,189 | (312,844) | ||
| Bad debt expense | 157,116 | - | - | ||
| Loss on disposal on property, plant and equipment | - | 37,550 | - | ||
| Change in operating assets and liabilities: | |||||
| Receivables from franchisees | (426,427) | (38,514) | (18,206) | ||
| Prepaid expenses and other current assets | (122,194) | (52,476) | (2,029) | ||
| Accounts payable and accrued expenses | 340,856 | 77,544 | (16,416) | ||
| Prepaid credit liability | 578,629 | - | - | ||
| Operating lease liability | |||||
| (129,395) | (121,021) | 284,482 | |||
| Deferred revenue | (130,000) | (694,346) | (40,264) | ||
| Accrued settlements, related party | (120,000) | 105,000 | - | ||
| Net cash provided by operating activities | 2,058,200 | 1,834,174 | 2,150,543 | ||
| Cash Flows From Investing Activities | |||||
| Additions to trademark | (13,815) | (23,975) | (42,207) | ||
| Due from related parties | (755,571) | - | 21,233 | ||
| Loans receivable, related parties | (178,753) | - | - | ||
| Purchase of property and equipment | - | (6,032) | (29,826) | ||
| Net cash used in investing activities | (948,139) | (30,007) | (50,800) | ||
| Cash Flows From Financing Activities | |||||
| Proceeds from surety bond | - | - | 140,000 | ||
| Due to members | - | - | (375,000) | ||
| Distributions to members | (1,201,113) | (2,744,200) | (3,012,756) | ||
| Net cash used in financing activities | (1,201,113) | (2,744,200) | (3,247,756) | ||
| Net decrease in cash | (91,052) | (940,033) | (1,148,013) | ||
| Cash and Restricted Cash, Beginning | 483,493 | 1,423,526 | 2,571,539 | ||
| Cash and Restricted Cash, Ending | $ 392,441 | $ 483,493 | $ 1,423,526 | ||
| Supplemental Disclosure of Cash Flow Information | |||||
| Cash paid for interest | $ 77,508 | $ 45,213 | $ 4,360 |
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the net cash used in investing activities in 2023 was $30,007. This figure represents the total cash outflow resulting from investments made by Dog Haus during that year. These investments can include items such as additions to trademarks and purchases of property and equipment.
For a prospective franchisee, understanding the investing activities of the franchisor can provide insights into how Dog Haus is allocating its resources for long-term growth and development. Significant investments in areas like trademarks might indicate a focus on brand protection and enhancement, which could benefit franchisees through increased brand recognition and customer loyalty. Conversely, consistent investments in property and equipment could suggest that Dog Haus is committed to supporting its corporate operations and potentially developing new technologies or infrastructure to aid franchisees.
It's important to note that the net cash used in investing activities does not necessarily reflect the profitability or financial health of Dog Haus. Instead, it provides a snapshot of the company's investment strategy and its priorities for capital allocation. Franchisees may want to inquire about the specific nature of these investments and how they are expected to contribute to the overall success of the Dog Haus system. Understanding these details can help franchisees assess the franchisor's long-term vision and its commitment to supporting the franchise network.