What was the balance of Angry Chickz's contract liabilities as of 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 the contract assets at beginning of the year | - - |
| Increase, excluding amounts recognized as expenses during the period | 59,250 |
| BALANCE, December 31, 2024 | $ 59,250 |
| The following table reflects the change in contract liabilities from June 9, 2023 and December 31, 2024: | Contract Liabilities |
| BALANCE, June 9, 2023 (inception) | $ - |
| Revenue recognized that was included in contract liability at beginning of the year | - |
| Increase, excluding amounts recognized as revenue during the period | - |
| BALANCE, December 31, 2023 | - |
| Revenue recognized that was included in |
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 their contract liabilities as of December 31, 2024, was $396,250. This figure represents the total amount of revenue that Angry Chickz has received but not yet recognized as earned income under accounting principles. This typically includes franchise fees or other payments received for which Angry Chickz has not yet provided the associated services or fulfilled their obligations.
For a prospective Angry Chickz franchisee, this indicates the financial health and obligations of the franchisor. A significant contract liability balance suggests that Angry Chickz has a pipeline of future revenue from franchise agreements. This deferred revenue will be recognized over time as Angry Chickz fulfills its obligations to its franchisees, such as providing training, support, and access to their brand and systems.
It is important to note that contract liabilities are a normal part of franchise accounting. The balance can fluctuate depending on the timing of franchise sales and the recognition of revenue. Franchisees should monitor these figures in subsequent financial statements to understand how Angry Chickz is managing its revenue recognition and fulfilling its obligations.
In addition to the contract liabilities, the FDD also provides information on contract assets. As of December 31, 2024, the balance of Angry Chickz's contract assets was $59,250. Contract assets are unearned commissions that have been paid to customers but not yet amortized.