What was the net cash provided by operating activities 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: | |||
| Depreciatio |
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 operating activities in 2022 was $610,739. This figure represents the cash generated from the company's core business operations during that year. It's a key indicator of Zoomin Groomin's ability to fund its operations and growth through its primary business activities.
Specifically, this number is calculated by starting with the net loss of $(482,370) and adjusting for non-cash items such as depreciation and amortization ($6,000), changes in inventory ($128,467), accounts receivable ($(91,766)), prepaid expenses (($28)), accounts payable ($44), and deferred revenue ($1,050,392). These adjustments convert the net loss into a cash flow figure, providing a clearer picture of the company's actual cash generation.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial. It demonstrates the financial health and stability of Zoomin Groomin. A positive cash flow from operations indicates that the company is generating enough cash to cover its expenses and potentially reinvest in the business, which can be a positive sign for future growth and franchisee support. However, it is important to also consider the net loss of $(482,370) during the same period, which suggests that while the company generated cash, it was not profitable on a net income basis.
It is also important to note that the FDD includes financial statements audited by DASH Business Solutions, LLC, indicating an independent review of Zoomin Groomin's financial records. This audit provides an additional level of assurance regarding the accuracy and reliability of the financial information presented. Prospective franchisees should carefully review all financial statements and notes within the FDD to gain a comprehensive understanding of Zoomin Groomin's financial performance and position.