What was the net cash provided by operating activities for Face Foundrie in 2024?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| (559,155) | | Member distributions | (507,842) | | Net income | 233,689 | | Balance at December 31, 2023 | (833,308) | | Member distributions | (486,625) | | Net income | 937,141 | | Balance at December 31, 2024 | $ (382,792) |
STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2024, 2023 and 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Cash flows from operating activities: | ||||||
| Net income (loss) | $ | 937,141 | $ | 233,689 | $ | (409,453) |
| Adjustments to reconcile net income (loss) | ||||||
| to net cash provided by activities: | ||||||
| Depreciation and amortization | 14,016 | 10,015 | 889 | |||
| Change in operating assets and liabilities: | ||||||
| Accounts receivable, net | (328,459) | 4,709 | 153,863 | |||
| Prepaid expenses | 9,446 | (17,976) | - | |||
| Note receivable related party | - | (619,014) | (9,232) | |||
| Deferred contract costs | 30,000 | 4,000 | 4,000 | |||
| Other current assets | 29,383 | 44,068 | (73,451) | |||
| Accounts payable | 22,548 | 20,074 | - | |||
| Accrued expenses | 8,209 | (31,805) | 46,662 | |||
| Credit ca |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2024 was $2,002,679. This reflects the cash generated from the company's core business operations during the year. It's a key indicator of Face Foundrie's financial health and its ability to fund its operations and growth.
For a prospective franchisee, a strong net cash flow from operating activities suggests that Face Foundrie's business model is sustainable and profitable. It indicates that the company is effectively managing its revenues and expenses, which can translate to a stable and supportive franchisor-franchisee relationship. This figure is derived by starting with the net income (which was $937,141 in 2024) and adjusting for non-cash items like depreciation and amortization ($14,016), as well as changes in operating assets and liabilities.
Changes in operating assets and liabilities also play a significant role in determining the net cash flow. For example, an increase in accounts receivable (($328,459)) can decrease the net cash flow, while an increase in gift card liability ($966,166) and deferred revenue ($313,904) can increase it. These adjustments provide a more accurate picture of the actual cash generated by Face Foundrie's operations.
Overall, the net cash provided by operating activities is a critical metric for assessing Face Foundrie's financial performance. Potential franchisees should carefully review this figure, along with other financial statement data, to gain a comprehensive understanding of the company's financial stability and growth potential.