What was the net cash provided by Zoomin Groomin's investing activities in 2023?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| 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) |
| Net Cash Provided by Investing Activities | (2,377,812) | (2,294,304) | (621,654) |
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 net cash provided by investing activities in 2023 was a negative $2,294,304. This indicates that Zoomin Groomin used more cash than it generated from its investing activities during that year. These activities include items such as amounts due to and from affiliates, and notes receivable assets.
Specifically, the investing activities that contributed to this net cash outflow include Due To Affiliates (-$126,504), Due From Affiliates (-$2,253,123), Purchase of Assets (no value provided), and Notes Receivable Assets ($85,323). The large negative values for Due To Affiliates and Due From Affiliates indicate significant cash movements related to transactions with affiliated companies.
For a prospective franchisee, this information is useful for understanding how Zoomin Groomin manages its cash flow and invests in its business. A consistently negative cash flow from investing activities could raise questions about the company's investment strategies and financial stability, although it is not uncommon for a growing franchise to have such negative cash flow as it builds its infrastructure. It would be prudent for a potential franchisee to inquire about the nature of these investing activities and their long-term implications for the company's financial health.