What was the amount of cash Zoomin Groomin received due to affiliates in 2022?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
-----| | Member Contributions | - | | Member Distributions | - | | Net Income (Loss) | (482,370) | | Equity at December 31, 2022 | $ (693,256) | | Equity at January 1, 2023 | $ (693,256) | | Member Contributions | - | | Member Distributions | - | | Net Income (Loss) | (1,117,726) | | Equity at December 31, 2023 | $ (1,810,982) | | Equity at January 1, 2024 | $ (1,810,982) | | Member Contributions | - | | Member Distributions | - | | Net Income (Loss) | (1,825,281) | | Equity at December 31, 2024 | $ (3,636,263) |
Statements of Cash Flows For The Three Years Ended December 31, 2024
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows From Operating Activities: | |||
| Net Income (Loss) | $ (1,825,281) | $ (1,117,726) | $ (482,370) |
| Adjustments to Reconcile Net Loss to Net | |||
| Cash Provided by Operating Activities: | |||
| Depreciation & Amortization | 6,000 | 6,000 | 6,000 |
| Changes in Assets and Liabilities | |||
| (Increase) Decrease in Inventory | 7,308 | 76,872 | 128,467 |
| (Increase) Decrease in Accounts Receivable | (173,640) | (51,110) | (91,766) |
| (Increase) Decrease in Prepaid Expenses | 8 | (1,510) | (28) |
| Increase (Decrease) in Accounts Payable | (71,077) | 81,530 | 44 |
| Increase (Decrease) in Unearned Revenue | 60,000 | 40,000 | - |
| Increase (Decrease) in Deferred Revenue | 4,334,346 | 3,366,736 | 1,050,392 |
| Net Cash Provided by Operating Activities | 2,337,664 | 2,400,792 | 610,739 |
| Cash Flows From Investing Activities: | |||
| Due To Affiliates | (45,000) | (126,504) | (351,756) |
| Due From Affiliates | (2,389,938) | (2,253,123) | (176,000) |
| Purchase of Assets | - | - | - |
| Notes Receivable Assets | 57,126 | 85,323 | (93,898) |
| Ne |
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the cash flow activities are detailed in the Statement of Cash Flows. In 2022, Zoomin Groomin had cash outflows related to affiliates. Specifically, the amount "Due To Affiliates" was a negative $351,756, and the amount "Due From Affiliates" was a negative $176,000. These values represent the cash flow between Zoomin Groomin and its affiliates during that year.
These figures are important for prospective franchisees as they provide insight into the financial relationships between Zoomin Groomin and its related entities. Understanding these cash flows can help franchisees assess the financial stability and interconnectedness of the Zoomin Groomin network. It is important to note that these numbers reflect the company's transactions with its affiliates and may not directly indicate the profitability or performance of individual franchise units.
For a potential franchisee, this information highlights the importance of understanding the broader financial structure of the franchise system. While these numbers do not directly impact the day-to-day operations of a franchise, they offer a glimpse into the financial management and relationships within the Zoomin Groomin organization. It would be prudent for a prospective franchisee to inquire about the nature of these affiliate transactions and their potential impact on the franchise system's overall health and stability.