What were the proceeds from 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 proceeds from notes payable in 2024 amounted to $409,200. This figure is detailed within the Statement of Cash Flows for the year ended December 31, 2024. This indicates the total amount of money Pearce Bespoke received from loans or other debt instruments during that year.
For a prospective franchisee, this information provides insight into how Pearce Bespoke manages its finances and raises capital. Proceeds from notes payable can be used for various purposes, such as funding operations, expansion, or investments. A high amount of proceeds from notes payable could indicate that Pearce Bespoke relies on debt financing, which may carry financial risks if not managed properly.
It's important for potential franchisees to consider the context of these proceeds within the broader financial picture of Pearce Bespoke. Reviewing the complete financial statements, including the balance sheet and income statement, will provide a more comprehensive understanding of the company's financial health and its ability to meet its obligations. Understanding the terms and conditions of these notes payable, such as interest rates and repayment schedules, is also crucial for assessing the financial stability of Pearce Bespoke.
Franchisees should also inquire about the specific purposes for which these funds were used and how they contributed to the company's growth and profitability. This due diligence will help potential franchisees make informed decisions about investing in a Pearce Bespoke franchise.