What was the net cash provided by financing activities for Pearce Bespoke in 2022?
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 net cash provided by financing activities in 2022 was $54,245. This figure reflects the cash Pearce Bespoke received from sources such as member contributions during that year.
For a prospective franchisee, understanding the franchisor's sources of financing and cash flow trends can offer insights into the financial stability and growth trajectory of the company. Positive cash flow from financing activities might indicate successful capital raising or investments into the company.
However, it is important to consider these figures in the context of Pearce Bespoke's overall financial performance, including operating and investing activities, to get a complete picture. Reviewing these statements over several years can reveal trends and potential areas of concern or strength. A potential franchisee should consult with a financial advisor to fully understand the implications of these financial statements.