What were the payments on due to member for Pump It Up in 2023?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
quisition of Property and Equipment | | - | (68,087) | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | | Payments on Due to Member | (3,000,000) | (612,681) | | | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (630,433) | 546,336 | | | Cash and Cash Equivalents - Beginning of Year | 1,111,490 | 565,154 | | | CASH AND CASH EQUIVALENTS - END OF YEAR | $481,057 $ | 1,111,490 | |
FB HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net Income | $ 1,690,253 | $ 1,721,880 |
| Adjustments to Reconcile Net Income to Net Cash | ||
| Provided by Operating Activities: | ||
| Depreciation and Amortization | 318,055 | 317,915 |
| Change in Allowance for Doubtful Accounts | (145,660) | (8,414) |
| Noncash Lease Expense | (10,268) | 15,729 |
| Increase (Decrease) in Assets: | ||
| Accounts Receivable | 249,755 | 244,252 |
| Prepaid Expenses | (123) | (29) |
| Increase (Decrease) in Liabilities: | ||
| Accounts Payable | (1,670) | (898) |
| Accrued Expenses | (245,516) | 90,632 |
| Deferred Franchise Fees | 33,500 | (11,500) |
| Net Cash Provided by Operating Activities | 1,888,326 | 2,369,567 |
| CASH FLOWS FROM INVEST |
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the payments on due to member in 2023 were ($3,000,000). This figure is part of the cash flow from financing activities reported in the financial statements. Payments on due to member reflect the movement of funds between Pump It Up and its member, which is the entity or individual that holds the ownership interest in the company. These payments typically represent repayments of loans or other forms of financial obligations that Pump It Up owes to its member.
For a prospective franchisee, understanding these related-party transactions is crucial. Significant payments to members could indicate the financial structure and obligations of the company. While such transactions are not inherently negative, franchisees should assess whether these payments impact the company's ability to support the franchise system. High payments on debt to members might reduce the funds available for reinvestment in the brand, marketing, or franchisee support.
It is important to note that the FDD provides a snapshot of past financial performance. Prospective franchisees should discuss with the franchisor the nature of these 'due to member' obligations, the repayment schedule, and how these payments are expected to impact the company's future financial health and its ability to support its franchisees. Understanding the context behind these figures will help franchisees make informed decisions about their investment.