What was the cash at the end of the period for Pearce Bespoke in 2023?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Contributions | - | | 54,245 | | Members' Equity (Deficiency), Ending | $ (471,984) | $ | 7,880 |
PEARCE BESPOKE FRANCHISING, LLC STATEMENTS OF CASH FLOWS
| Years Ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Operating Activities: | ||||
| Net Loss | $ (479,864) | $ | (46,365) | |
| Adjustments to reconcile net loss to net cash | ||||
| provided by (used in) operating activities: | ||||
| Net change in right-of-use asset | 150 | - | ||
| Changes in assets and liabilities: | ||||
| Accounts receivable | (22,188) | - | ||
| Deposits | (2,198) | - | ||
| Deferred consulting fee | (666,186) | (25,000) | ||
| Accounts payable | 72,934 | 7,591 | ||
| Accrued payroll taxes | 18,282 | 5,339 | ||
| Deferred franchise fee revenue | 1,201,715 | 51,000 | ||
| Net Cash Used in Operating Activities | 122,645 | (7,434) | ||
| Financing Activities: | ||||
| Related party payables | 692 | - | ||
| Member contributions | - | 54,245 | ||
| Net Cash Provided by Financing Activities | 692 | 54,245 | ||
| Increase in Cash | 123,337 | 46,811 | ||
| Cash - Beginning of Period | 46,811 | - | ||
| Cash - End of Period | $ 170, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the cash at the end of the period for 2023 was $170,147. This figure represents the company's liquid assets available at the close of the fiscal year, which ends on December 31. This information is derived from the statement of cash flows, which provides a comprehensive overview of the company's financial activities.
For a prospective franchisee, understanding the cash position of Pearce Bespoke is crucial for assessing the financial health and stability of the franchisor. A strong cash balance indicates that the company has sufficient resources to meet its short-term obligations and invest in future growth. It also suggests that Pearce Bespoke is managing its finances effectively and is less likely to face financial difficulties that could impact its franchisees.
However, it's important to consider the context of this cash balance. While $170,147 may seem like a substantial amount, it should be evaluated in relation to the company's overall revenues, expenses, and liabilities. A high cash balance may not necessarily indicate strong financial performance if the company is generating low revenues or incurring significant expenses. Therefore, prospective franchisees should conduct a thorough analysis of Pearce Bespoke's financial statements to gain a complete understanding of its financial condition.
Furthermore, it is important to note that the FDD also includes audited financial statements for 2022 and 2024, allowing for a comparative analysis of Pearce Bespoke's financial performance over time. By examining trends in cash flow, revenues, and expenses, prospective franchisees can gain valuable insights into the company's growth trajectory and potential for future success.