What was the net cash used by investing activities for Fly Fitness in 2022?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
(155,540) | | Members' equity, beginning of year | 468,165 | | Members' equity, end of year | $ 312,625 |
STATEMENT OF CASH FLOWS
| For the Year Ended December 31 | 2022 |
|---|---|
| Increases (decreases) in cash and cash equivalents | |
| Cash flows from operating activities Net income (loss) | $ (155,540) |
| Adjustments to reconcile net loss to net cash used by operating activities | 12 500 |
| Amortization | 12,500 |
| Increase in operating liabilities | 125 |
| Credit cards payable Accrued payroll | 125 3,294 |
| Net cash used by operating activities | $ (139,621) |
| Cash flows from investing activities | |
| Cash paid for intangible assets | $ (125,000) |
| Net cash used by investing activities | $ (125,000) |
| NET CHA |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the net cash used by investing activities in 2022 was $125,000. This figure reflects the cash paid for intangible assets during that year. This information is derived from the financial statements included in the FDD, which provide a summary of the company's financial performance and position.
Specifically, the $125,000 was used for a licensing agreement with "Fly – A Fitness Revolution" for the use of intellectual property, including trademarks, logos, and the Fly Fitness name. The agreement was for a 10-year term and included an additional $20,000 per year fee for the life of the agreement.
For a prospective franchisee, this indicates that Fly Fitness made a significant investment in its brand and intellectual property. Reviewing these figures can help potential franchisees understand how Fly Fitness is allocating its resources and managing its cash flow, which can be useful in assessing the financial stability and strategic direction of the company.