What was the net cash provided by (used in) operating activities for Hck Hot Chicken in 2023?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 287,879 | $ ( | 30,539 | ) | $ | 257,340 | |
| 2023 | 2022 | |||||
|---|---|---|---|---|---|---|
| Cash flows from operating activities | ||||||
| Net loss | $ ( | 5,953 | ) | $ ( | 18,149 | ) |
| Adjustments to reconcile net income to net cash | ||||||
| provided by operating activities | ||||||
| Amortization | 15,348 | 15,348 | ||||
| Changes in: | ||||||
| Accounts receivable | ( | 178,654 | ) | ( | 111,504 | ) |
| Prepaid expenses | ( | 203,750 | ) | ( | 67,917 | ) |
| Accrued expenses | 6,910 | 3,562 | ||||
| Deferred revenue | 432,907 | 1- | 246,667 | |||
| Net cash provided by operating activities | 66,808 | 68,007 | ||||
| Cash flows from investing activities | ||||||
| Start up costs | ÷ | 8- | ||||
| Net cash used in investing activities | 1.5 | 3.A | ||||
| Cash flows from financing activities | ||||||
| Member contributions | _ | Δ. | ||||
| Net cash provided by financing activities | _ | - 1 | ||||
| Net increase in cash and cash equivalents | 66,808 | 68,007 | ||||
| Cash and cash equivalents |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $66,808. This figure represents the cash flow generated from the company's core business operations during that year. It's calculated by adjusting net loss for non-cash items and changes in working capital accounts.
Specifically, the net loss for 2023 was $(5,953), but after accounting for adjustments such as amortization ($15,348), changes in accounts receivable ($(178,654)), prepaid expenses ($(203,750)), accrued expenses ($6,910), and deferred revenue ($432,907), the net cash provided by operating activities totaled $66,808. This indicates that despite a net loss, Hck Hot Chicken's operations generated a positive cash flow.
For a prospective franchisee, this information is crucial as it provides insight into the financial health and operational efficiency of Hck Hot Chicken. A positive net cash flow from operating activities suggests that the business is capable of generating sufficient cash to cover its operating expenses and potentially fund future growth. However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks to assess the overall financial viability of the franchise opportunity.