What were the payments on notes payable 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 payments on notes payable for the year ending December 31, 2024, totaled $242,818. This figure is part of the cash flow statement, specifically under cash flows from financing activities. Notes payable are formal debt instruments, and this payment reflects the amount Pearce Bespoke paid towards reducing its outstanding debt during that year.
For a prospective franchisee, understanding the franchisor's debt obligations and repayment schedule is crucial. High debt levels and substantial repayment obligations could indicate financial strain on the franchisor, potentially affecting their ability to support franchisees. It is important to note that this figure represents the payments made during the year, not the total outstanding debt.
Reviewing the complete financial statements, including the balance sheet and income statement, will provide a more comprehensive view of Pearce Bespoke's financial health. Additionally, comparing these figures with previous years can reveal trends in the company's debt management and overall financial stability. A potential franchisee should consider consulting with a financial advisor to fully assess the implications of Pearce Bespoke's financial situation.