What was the balance of contract assets for Angry Chickz on December 31, 2024?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
statements were available to be issued.
Note 3 – Contract Liabilities
The following table reflects the change in contract assets from June 9, 2023 and December 31, 2024:
| BALANCE, June 9, 2023 (inception) Expenses recognized that were included in the contract assets at beginning of the year | $ - - |
|---|---|
| Increase, excluding amounts recognized as expenses during the period | - |
| BALANCE, December 31, 2023 Expenses recognized that were included in t |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the balance of contract assets on December 31, 2024, was $59,250. This figure represents the total value of expenses recognized that were included in the contract assets at the beginning of the year, along with increases excluding amounts recognized as expenses during the period.
Contract assets typically arise when Angry Chickz has performed its obligations under a contract (like a franchise agreement) but hasn't yet received payment from the franchisee. This can include costs associated with setting up a new franchise location or providing initial training and support. The increase of $59,250 during 2024 suggests that Angry Chickz invested in supporting new or existing franchise agreements, with the expectation of future revenue.
Prospective franchisees should understand how these contract assets are generated and how they might relate to the services and support they receive from Angry Chickz. It's also worth inquiring about the specific accounting policies used to determine the value of these assets, as this can impact the franchisor's financial statements and overall financial health. Understanding the franchisor's asset management can provide insight into their operational strategies and financial stability.