What was the net cash used in investing 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 card payable | (2,707) | 12,578 | (10,880) | |||
| Gift card liability | 966,166 | 755,694 | 712,734 | |||
| Operating lease liability | 3,032 | 4,165 | 5,276 | |||
| Deferred revenue | 313,904 | 464,900 | 785,720 | |||
| Net cash provided by operating activities | 2,002,679 | 885,097 | 1,206,128 | |||
| Cash flows from investing activities: | ||||||
| Purchase of equipment | (4,557) | - | (7,466) | |||
| Purchases of intangible assets | - | (20,000) | (42,340) | |||
| Net cash used in investing activities | (4,557) | (20,000) | (49,806) | |||
| Cash flows from financing activities: | ||||||
| Contributions | - | - | 55,552 | |||
| Distributions | (486,625) | (507,842) | (120,995) | |||
| Net cash used in financing activities | (486,625) | (507,842) | (65,443) | |||
| Net change in cash and cash equivalents | 1,511,497 | 357,255 |
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 used in investing activities in 2024 was $4,557. This figure represents the total cash outflow related to the purchase of equipment during that year.
For a prospective franchisee, understanding the cash flow statement is crucial. Investing activities typically involve the purchase of long-term assets like equipment, which are necessary for business operations. The fact that Face Foundrie used $4,557 in investing activities in 2024 indicates that the company made investments in its infrastructure or resources during that period.
It's important to note that this figure only reflects the purchase of equipment and does not include any purchases of intangible assets. Reviewing the cash flow statements over several years, as provided in the FDD, can give a potential franchisee insight into Face Foundrie's investment strategy and how it allocates capital to grow the business. This information, combined with other financial metrics, can help in assessing the financial health and stability of the franchise system.