What was the net cash provided by operating activities for Lees Famous Recipe in 2023?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2022 | 19,887,331 | 1,989 | 11,998,011 | (839,693) | 11,160,307 | | Net income | - | - | - | 244,996 | 244,996 | | Balance, December 31, 2023 | 19,887,331 | $ 1,989 | $ 11,998,011 | $ (594,697) | $ 11,405,303 |
ARTEMIS RESTAURANT CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS AND PERIOD ENDED DECEMBER 31, 2023, 2022 AND 2021
From the period from May 6, 2021 (inception) to December 31,
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Cash Flows from Operating Activities: | $ 244,996 | $ (433,830) | $ (405,863) |
| Net income (loss) | |||
| Adjustments to reconcile net income (loss) to net | |||
| cash provided by operating activities: | |||
| Depreciation and amortization | 2,994,576 | 2,943,406 | 581,141 |
| Amortization of right of use asset in excess of rent paid | 55,708 | 53,057 | - |
| Deferred income taxes | 136,000 | (88,000) | (132,000) |
| Change in - | |||
| Royalties receivable | 18,188 | (103,349) | 224,166 |
| Proprietary product sales and allowances receivable | (412,895) | (823,305) | (52,030) |
| Due from related party | - | 19,141 | (19,141) |
| Other receivables | (4,129) | 4,771 | (31,876) |
| Inventory | (1,588) | (157,110) | (77,854) |
| Prepaid expenses | 6,128 | 14,576 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $3,902,112. This figure represents the cash flow generated from the company's core business operations during that year. It indicates the amount of cash Lees Famous Recipe brought in from its regular business activities, after accounting for operating expenses.
For a prospective franchisee, this number is an indicator of the financial health and stability of Lees Famous Recipe. A positive net cash flow from operating activities suggests that the company is effectively managing its revenues and expenses, and is able to generate cash from its primary business functions. This can be reassuring for franchisees, as it implies that the franchisor is on solid financial footing.
However, it is important to consider this figure in the context of other financial data provided in the FDD, such as cash flows from investing and financing activities, as well as the overall financial performance of the company over several years. A single year's positive cash flow does not guarantee future success, and prospective franchisees should conduct thorough due diligence to assess the long-term viability of the franchise opportunity.