What was the amount of distributions to the member for Angry Chickz in 2024?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
100,000 |
Angry Chickz Franchising, LLC
Statements of Operations and Member's Deficit December 31, 2024 and Period from June 9, 2023 (inception) to December 31, 2023
| 2024 | 2023 | |
|---|---|---|
| REVENUE Royalties Brand fund Franchise fee | $ 154,415 51,466 3,750 | $ - - - |
| Total revenue | 209,631 | - |
| COSTS AND EXPENSES Salaries and wages Legal and professional fees Other operating expenses | 229,527 56,310 360,054 | 42,528 176,801 - |
| NET LOSS | (436,260) | (219,329) |
| MEMBER'S DEFICIT, beginnin |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the distributions to the member in 2024 totaled $42,747. This figure represents the amount of cash or other assets that Angry Chickz Franchising, LLC distributed to its parent company, Angry Chickz, Inc., during that year. These distributions are essentially a transfer of profits or capital from the subsidiary (franchising entity) to the parent company.
For a prospective franchisee, this indicates how Angry Chickz manages its finances and shares profits with its parent company. It's a normal business practice for a subsidiary to distribute profits to its parent, but the amount can fluctuate based on the subsidiary's financial performance and the parent company's needs. The FDD also shows that in 2023, there were no distributions to the member, but a contribution from the member of $200,000.
It's important to note that these distributions are separate from the royalties and fees that franchisees pay to Angry Chickz. Franchisees pay royalties and brand fund fees based on a percentage of their gross sales, while the distributions reflect the internal financial transactions between the franchising entity and its parent company. Reviewing these figures can give a franchisee a better understanding of the overall financial structure of the Angry Chickz franchise system.