What was the net loss 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 | 170,147 |
| CASH, ENDING | $ 19,957 |
| SUPPLEMENTAL DISCLOSURES | |
| Cash paid for interest | $ 63,396 |
| Cash paid for taxes |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company experienced a net loss of $22,237 in 2024. This figure is derived from the statement of cash flows for the year ending December 31, 2024. The document also details several adjustments made to reconcile this net loss to the net cash used in operating activities.
These adjustments include amortization expenses of $1,010, recognition of deferred commissions amounting to $145,502, and recognition of non-refundable deferred franchise fees totaling ($872,417). Changes in assets and liabilities also played a role, with accounts receivable at ($83,157), deferred commissions at ($156,000), accounts payable and accrued expenses at $32,700, franchisee payable at $151,944, and non-refundable deferred franchise fees at $433,500.
It is important for a prospective franchisee to understand these figures, as they provide insight into the financial performance and cash flow management of Pearce Bespoke. While a net loss can be concerning, the adjustments listed offer a more detailed picture of the company's financial activities and may indicate potential for future profitability. Reviewing the complete audited financial statements and consulting with a financial advisor is recommended to fully assess the financial health of Pearce Bespoke.