What was the net change in cash for Stretch Zone at the end of 2023?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| Net change in cash | (3,076,647) | 2,930,205 |
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the net change in cash for the company at the end of 2023 was a decrease of $3,076,647. This figure represents the overall increase or decrease in Stretch Zone's cash balance after accounting for all cash inflows and outflows during the year.
This net change in cash is a critical indicator of Stretch Zone's financial health. A negative change, as seen in 2023, suggests that the company used more cash than it generated during the year. This could be due to various factors, such as operating losses, investments in assets, or debt repayments. Prospective franchisees should investigate the reasons behind this decrease to understand the potential risks and challenges facing the company.
For comparison, the FDD shows that in 2022, Stretch Zone experienced a net increase in cash of $2,930,205. Reviewing these figures over several years can provide a more comprehensive understanding of the company's cash flow trends and its ability to manage its finances. A prospective franchisee should analyze these trends to assess the financial stability and growth potential of Stretch Zone.