What was the cash balance at the beginning of the period for Zoomin Groomin 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 balance at the beginning of the period in 2022 was $15,809. This figure represents the amount of cash and cash equivalents the company had on hand at the start of that year, which is a key indicator of the company's financial health and liquidity at that time.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests that Zoomin Groomin has sufficient resources to support its franchisees and invest in the growth of the franchise system. It can also indicate the company's ability to weather economic downturns or unexpected expenses.
However, it's important to consider this figure in the context of the company's overall financial performance. While a strong beginning cash balance is a positive sign, it doesn't guarantee future success. Franchisees should also review Zoomin Groomin's revenue, expenses, and profitability to get a complete picture of its financial stability. Additionally, comparing the beginning cash balance to the ending cash balance for 2022 ($4,894) reveals a decrease in cash during the year, which could warrant further investigation into the reasons behind the decline.
In summary, the $15,809 beginning cash balance for 2022 provides a snapshot of Zoomin Groomin's financial position at that specific point in time. Prospective franchisees should use this information as part of a comprehensive due diligence process, considering it alongside other financial metrics and qualitative factors to assess the overall health and potential of the franchise opportunity.