What was the change in inventory for Fast Fix Jewelry And Watch Repairs in 2023?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
| | (1,251,279) | | (344,949) | | Net income | | | | | | | 357,356 | | 357,356 | | Balance, December 31, 2024 | 978,781 | $ | 100 | $ | 906,230 | $ | (893,923) | $ | 12,407 |
| 2024 | 2023 | |||
|---|---|---|---|---|
| Operating activities | ||||
| Net income | $ | 357,356 | $ | 279,052 |
| Adjustments to reconcile net income to | ||||
| net cash provided by operating activities: | ||||
| Depreciation and amortization | 693,840 | 695,347 | ||
| Amortization of debt issuance costs | 77,040 | 77,040 | ||
| Deferred income taxes | 22,787 | 63,958 | ||
| Provision for credit losses | 46,557 | |||
| Paid-in-Kind (PIK) interest | 43,543 | 44,984 | ||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 52,988 | 5,495 | ||
| Franchise and advances receivable, net | 103,004 | - | ||
| Inventory | (28,005) | 325,631 | ||
| Prepaid expenses and other current assets | 33,280 | 30,120 | ||
| Deposits | 14,886 | 3,063 | ||
| Operating right-of-use assets and lease liabilities, net | 13,131 | 38,772 | ||
| Accounts payable | (127,596) | 86,698 | ||
| Accrued expenses and other liabilities | 16,810 | (221,455) | ||
| Income tax recei |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs' 2025 Franchise Disclosure Document, the change in inventory for the company in 2023 was an increase of $325,631. This figure is part of the adjustments made to reconcile net income to net cash provided by operating activities.
For a prospective franchisee, understanding changes in inventory is crucial for managing their own business effectively. A significant increase in inventory, as seen in 2023, could indicate several things, such as increased sales, overstocking, or changes in purchasing strategies. Franchisees need to monitor their inventory levels closely to optimize cash flow and minimize losses from obsolete or slow-moving items.
It's important to note that this figure reflects the consolidated financial performance of Jewelry Repair Enterprises, Inc., which includes both franchised and company-owned stores. Individual franchisee performance may vary based on location, management, and local market conditions. Therefore, prospective franchisees should inquire about the typical inventory management practices and performance metrics of existing franchisees to gain a more accurate understanding of what to expect in their own operations.