What was the net cash used in investing activities for Precision Door Service in 2022?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Equity contribution | 101,756 | | Distributions | (265,744) | | Net income | 166,470 | | Foreign currency translation adjustment | 18,104 | | | | | Balance – | $ 3,111,215 | | December 31, 2023 | |
Combined Statements of Cash Flows ($000's)
| For the years ended December 31, | 2023 | (Restated) 2022 |
|---|---|---|
| Operating activities | ||
| Net income | $ 166,470 $ | 138,944 |
| Adjustments to reconcile net income to net cash | ||
| provided by operating activities: | ||
| Depreciation and amortization | 97,290 | 82,921 |
| Bad debt expense | 2,283 | 2,035 |
| Notes received | (15,050) | (12,808) |
| Collections of notes receivable | 16,293 | 13,699 |
| Changes in assets and liabilities: | ||
| Trade accounts receivable | (464) | (8,183) |
| Inventories | 883 | (1,035) |
| Prepaid selling expenses and other assets | (11,464) | (9,491) |
| Accrued liabilities | 198 | 338 |
| Deferred revenue | 11,195 | 5,832 |
| Net cash provided by operating activities | 267,634 | 212,253 |
| Investing activities | ||
| Purchase of equipment and other assets | (2,893) | (7,904) |
| Purchase of intellectual property | - | (104,112) |
| Net cash used in investing activities | (2,893) | (112,016) |
| Financing activities | ||
| Equity contribution | - | 102,000 |
| Distributions paid | (265,744) | (202,999) |
| Net cash used in financing activities | (265,744) | (100,999) |
| Net decrease in cash and restricted cash | (1,003) | ( |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the net cash used in investing activities in 2022 was ($112,016). This figure represents the total cash outflow related to investments made by Precision Door Service during that year.
Specifically, this amount includes $7,904 spent on the purchase of equipment and other assets, and $104,112 on the purchase of intellectual property. These investments are typical for businesses that require equipment for operations and intellectual property for branding and proprietary processes.
For a prospective franchisee, understanding these figures provides insight into how Precision Door Service allocates its capital. Significant investments in intellectual property could indicate a focus on long-term brand value and competitive advantage, while investments in equipment suggest a commitment to operational capabilities. Franchisees may want to inquire about the specific types of equipment and intellectual property acquired to better assess the potential benefits for their own franchise operations.