How much cash did Pearce Bespoke pay for interest in 2024?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| 60,463 | \$ | (502,101) | \$ | (441,638) |
PEARCE BESPOKE FRANCHISING, LLC STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2024
| 2024 | |
|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| Net (loss) | $ (22,237) |
| Adjustments to reconcile net income (loss) to net | |
| cash provided by operating activities: | |
| Amortization expense | 1,010 |
| Recognition of deferred commissions | 145,502 |
| Recognition of non-refundable deferred franchise fees | (872,417) |
| Changes in assets and liabilities | |
| Accounts receivable | (83,157) |
| Deferred commissions | (156,000) |
| Accounts payable and accrued expenses | 32,700 |
| Franchisee payable | 151,944 |
| Non-refundable deferred franchise fees | 433,500 |
| Net cash (used) by operating activities | (369,155) |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| Net cash (used) for investing activities | - |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| Member contributions | 52,583 |
| Proceeds from notes payable | 409,200 |
| Payments on notes payable | (242,818) |
| Advances to related party | - |
| Net cash (used) by financing activities | 218,965 |
| NET INCREASE (DECREASE) IN CASH | (150,190) |
| CASH, BEGINNING | 170,147 |
| CASH, ENDING | $ 19,957 |
| SUPPLEMENTAL DISCLOSURES | |
| Cash paid for interest |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company paid $63,396 in cash for interest during the year ended December 31, 2024. This figure is detailed in the statement of cash flows, which provides a summary of all cash inflows and outflows for the business during the specified period. Understanding the cash flow statement is crucial for prospective franchisees as it offers insights into how Pearce Bespoke manages its finances and meets its obligations.
Interest payments typically arise from loans, leases, or other forms of debt financing that the company has undertaken. The amount of interest paid can indicate the level of debt Pearce Bespoke carries and its associated financing costs. For potential franchisees, this information is relevant because it reflects the financial health and stability of the franchisor. A high interest payment could suggest a significant debt burden, while a lower amount might indicate more conservative financial management.
It is important for prospective franchisees to review the complete financial statements and related notes to fully understand the context of these interest payments. This includes assessing the nature of the underlying debt, the terms of repayment, and the overall impact on Pearce Bespoke's profitability and cash flow. Consulting with a financial advisor can help potential franchisees interpret these financial statements and make informed decisions about investing in a Pearce Bespoke franchise.