What was the net cash provided by investing activities for Zoomin Groomin in 2024?
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 2024 was $(2,377,812). This indicates that Zoomin Groomin used more cash for investing activities than it generated from them during that year.
Investing activities typically include the purchase and sale of long-term assets, such as property, plant, and equipment, as well as investments in securities. In Zoomin Groomin's case, these activities included amounts due to and from affiliates, as well as notes receivable assets. The negative value suggests that the company was likely investing in its infrastructure or other long-term assets, or that amounts due from affiliates exceeded amounts due to affiliates, and that the cash outflow from these investments was greater than any cash inflow.
For a prospective franchisee, this information is useful for understanding how Zoomin Groomin manages its cash flow and invests in its business. A significant net cash outflow from investing activities could indicate that the company is in a growth phase, making investments for future expansion. However, it could also raise questions about the company's financial stability if not balanced by sufficient cash flow from operating or financing activities. It is important to consider this figure in the context of the company's overall financial performance and strategy.
It would be prudent for a potential Zoomin Groomin franchisee to inquire about the specific investments made during 2024 and the company's plans for future investing activities. Understanding the rationale behind these investments and their expected impact on the company's profitability and cash flow can help a franchisee assess the financial health and prospects of the franchise system.