What was the cash and cash equivalents balance at the beginning of 2023 for Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Members' equity, beginning of year | 312,625 | | Members' equity, end of year | $ 146,051 |
STATEMENT OF CASH FLOWS
| For the Year Ended December 31 | 2023 |
|---|---|
| Increases (decreases) in cash and cash equivalents | |
| Cash flows from operating activities | $ (166,574) |
| Net income (loss) | |
| Adjustments to reconcile net loss to net cash used by | 12,500 |
| operating activities | |
| Amortization | |
| Increase in operating liabilities Accounts payable Credit cards payable Accrued payroll Deferred revenue | 5,200 7,853 2,405 50,000 |
| Net cash used by operating activities | $ (88,616) |
| NET CHANGE IN CASH A |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the cash and cash equivalents at the beginning of 2023 was $203,544. This figure represents the amount of readily available funds Fly Fitness had at the start of the year, which can be used for operational expenses, investments, or other business activities.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance indicates financial stability and the ability to support franchisees. It can also reflect how well Fly Fitness manages its finances and whether it has sufficient resources to invest in the brand's growth and support systems.
However, it is important to note that this is just one point in time. The cash position can fluctuate throughout the year due to various factors such as revenues, expenses, and investments. Therefore, it is advisable for potential franchisees to review the complete financial statements and cash flow statements to get a comprehensive understanding of Fly Fitness's financial health and stability.