What was the net increase/decrease in cash for Pearce Bespoke 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 | 1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the net increase/decrease in cash for the company in 2024 was a decrease of $150,190. The beginning cash balance was $170,147, and the ending cash balance was $19,957.
The statement of cash flows provides a detailed breakdown of the factors contributing to this net decrease. The cash flows are categorized into operating, investing, and financing activities. For Pearce Bespoke, operating activities resulted in a cash outflow of $369,155, while financing activities generated a cash inflow of $218,965. There were no cash flows from investing activities during this period.
For a prospective franchisee, this information is useful in understanding the financial performance and cash management of Pearce Bespoke. A significant decrease in cash, primarily driven by operating activities, could indicate challenges in generating sufficient cash from its core business operations. However, the cash inflow from financing activities suggests that the company is actively raising capital to support its operations and growth. It's important to consider these figures in conjunction with other financial metrics and qualitative factors to assess the overall financial health and stability of the franchise.