What was the cash balance at the beginning of 2023 for Zoomin Groomin?
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 balance at the beginning of 2023 was $4,894. This figure is derived from the statement of cash flows, which tracks the movement of cash both into and out of the company over a period of time. The cash flow statement provides a clear picture of Zoomin Groomin's ability to manage its cash and meet its short-term obligations.
For a prospective franchisee, understanding the franchisor's cash flow is crucial. A healthy beginning cash balance suggests that Zoomin Groomin has sufficient liquidity to cover its immediate expenses and invest in growth opportunities. However, it is also important to consider the overall trend in cash flow.
By examining the cash flow statement, potential franchisees can assess Zoomin Groomin's financial stability and its ability to support its franchisees. It is important to note that while a strong cash position is a positive indicator, it should be evaluated in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of the franchise opportunity.